Deutsche Lufthansa Stock: EU Approves ITA Airways Acquisition Deal

The Lufthansa Group has secured a significant milestone in its expansion strategy with the European Commission's conditional approval to acquire Italy's ITA Airways. The German aviation giant will initially purchase a 41% stake for €325 million, with an option for complete acquisition in the future. As part of the competitive regulatory requirements, Lufthansa must make substantial concessions, including granting easyJet access to short-haul routes from Rome and Milan, along with crucial slots at Linate Airport. Additionally, Air France-KLM and IAG will receive preferential treatment for long-haul connections.

Market Response

The market's reaction to this development has been cautious, with Lufthansa's stock experiencing a slight decline to €6.29 in XETRA trading. This price represents a considerable gap from the 52-week high of €8.59 recorded in December 2023. However, analysts maintain an optimistic outlook, with an average target price of €7.26, suggesting significant upward potential for the stock.