(Adds details)
Dec 16 (Reuters) - Iberia-owner IAG and Air Europa
are looking at alternative ways to work together, with a
deadline set for the end of January, after they cancelled a
takeover deal more than a year after it was struck.
IAG, which also owns British Airways, said on Thursday it
would pay 75 million euros ($85 million) to Air Europa's
privately held Spanish owner Globalia.
"IAG has also reached an understanding with Globalia to
evaluate, before the end of January 2022, alternative structures
that may be of interest to both companies and offer significant
benefits for their shareholders, customers and employees," the
company said.
IAG had announced plans to buy Air Europa from Globalia for
1 billion euros in 2019, but the price was cut in half this year
after the airline industry was sent into a tailspin by the
COVID-19 pandemic.
The British airline group this week said it was set to
cancel its takeover of Air Europa after European regulators
indicated they would not allow it to go through without further
concessions.
IAG said it would pay 35 million euros, on top of the 40
million euros break-up fee, after agreeing that the amount would
be used to reduce any future purchase price if a new deal is
reached and to avoid litigation.
($1 = 0.8842 euros)
(Reporting by Yadarisa Shabong in Bengaluru and Kate Holton in
London; Editing by Amy Caren Daniel and Paul Sandle)