The German airline Lufthansa has received clearance from the EU Commission for its investment in the state-controlled Italian airline ITA Airways of 325 million euros (equivalent to 3.7 billion kronor).
Lufthansa's share price rises by around 2.5 percent on the Frankfurt Stock Exchange following the news.
After the transaction, Lufthansa will hold a 41 percent stake in ITA, with an option to take over full ownership.
The EU's review of the deal has been prolonged, but is now concluded since Lufthansa has agreed to concessions regarding flights from Italy to the rest of Europe and North America – to reduce the risk of distorted competition when the companies merge.
Lufthansa has previously taken over national airlines in Europe, including Swiss, Austrian, and Belgian Brussels Air.
The deal is being carried out simultaneously as Air France-KLM, together with the Danish state and a circle of investors, is injecting new capital into crisis-ridden SAS, where, according to reports, Air France-KLM is aiming to become the majority owner.
