Lufthansa Sells bmi

Lufthansa sold British subsidiary bmi (British Midland) to competitor IAG (British Airways + Iberia) for a gross price of 207 million euros. Virgin Atlantic had also engaged in the bidding, but came up empty.

After the deal was made public, Lufthansa’s shares gained 2.09 percent at the Frankfurt stock exchange, jumping to 9.21 euros each. The transaction, however, still needs to get the green light from the antitrust authorities, which is expected to happen during Q1, 2012.

The step is fully in line with Lufthansa’s strategy to divest losing subsidiaries and business units. It further consolidates the European aviation market.