Turkish Airlines says bid for Spain's Air Europa stake accepted

National flag carrier Turkish Airlines (THY) announced Tuesday that Air Europa accepted its offer for the acquisition of a minority stake in Spanish airline.

The Turkish carrier disclosed in June that it was holding non-binding talks over a potential Air Europa investment, and it announced earlier this month that it was in the process of preparing a binding offer.

In a statement to the Public Disclosure Platform (KAP) late on Tuesday, Turkish Airlines said Air Europa accepted the offer and the process has now moved to the preparation of transaction documentation and the commencement of official procedures related to closing.

The transaction involves an investment of 300 million euros (nearly $350 million), it said, adding that the majority of the investment would be in the form of a capital increase.

The exact percentage of the minority stake that Turkish Airlines will acquire would be determined following technical and financial adjustments at the closing stage, it also said.

Media reports in Spain and Türkiye reported a figure of some 26%.

"The process is expected to be completed within approximately six to 12 months subject to obtaining the necessary permits and approvals from the relevant regulatory authorities," Turkish Airlines said.

A THY executive earlier said the main reason for the interest in the Spanish carrier was that its flight network complements that of Turkish Airlines, with a strong presence in Latin America and the Iberian peninsula.

The airline submitted its binding offer on Tuesday to Globalia, the Spanish tourism group which holds an 80% stake in Air Europa.

The other 20% is held by British Airways owner IAG.

The announcement comes two weeks after rival bidders Lufthansa and Air France-KLM dropped out of talks to take a stake in the Spanish airline.

Turkish Airlines had on Aug. 7 informed KAP it had decided to submit a binding offer to acquire a minority stake in Air Europa.

It said the complementary nature of its own global passenger and cargo network and Air Europa's strong position in the Iberian Peninsula and Latin America would "contribute to achieving scaled and rapid growth in the Latin American market" and create new revenue channels.

Last year, IAG dropped a bid for a full takeover of the Spanish carrier owing to regulatory constraints.