Ryanair plans to accept IAG offer for Aer Lingus

Grass-roots shareholders are expected to back the offer at a Dublin extraordinary general meeting next week.

IAG has confirmed it wants Aer Lingus to join the Oneworld airline alliance, of which its brands BA and Iberia are members, and become part of of a joint business that IAG operates over the North Atlantic alongside American Airlines.

IAG had made the acquisition of Aer Lingus contingent on the backing by Ryanair and the Irish government, which owns about 25% of the national carrier’s shares.

The European Commission extended the deadline for its decision to July 15 after receiving competition concessions, including a commitment from IAG to allow the Irish carrier to keep commercial deals with rivals on long-haul flights via London, a source close to the matter said.

Ryanair’s colourful CEO Michael O’Leary said in a statement today: “

We believe the IAG offer for Aer Lingus is a reasonable one in the current market and we plan to accept it, in the best interests of Ryanair shareholders.

“.

Aer Lingus’s board accepted a takeover offer from IAG, formally known as global Consolidated Airlines Group PLC, in January.

The Ryanair Board have said they believe the offer “maximises” Ryanair shareholder value. “Today Ryanair (over 100m) carries more than 10 times Aer Lingus traffic (10m), and we will continue to deliver the vast majority of Ireland’s traffic and tourism growth in the coming months and years”. Shares in IAG rose more than 2% on the news.