British Airways owner IAG buys BMI from Lufthansa

British Airways owner IAG has agreed a binding deal to buy BMI from Lufthansa for £172.5m, but has warned the deal could lead to job losses.



IAG, which also owns Spanish airline Iberia, will gain 56 more slots at Heathrow airport in the deal.

The airlines said they hoped the takeover would be completed in the first three months of next year.

The deal remains subject to clearance by competition bodies, and rival Virgin has said it will oppose the tie-up.

Lufthansa had signed a non-exclusive agreement with IAG in November, but had also been in talks with Virgin.

SEE BBC NEWS: http://www.bbc.co.uk/news/business-16298167