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Lufthansa, BA parent sign British Midland deal

Lufthansa, BA parent sign British Midland deal

December 22nd, 2011 in News

BERLIN (AP) - Germany's Lufthansa says it has signed a binding agreement to sell its loss-making British Midland subsidiary to the parent of rival British Airways.

Deutsche Lufthansa AG said the agreement signed Thursday values the purchase at 172.5 million pounds ($270 million). But it said that "after agreed price reductions, the net purchase price is expected to be significantly negative."

The German airline says a British holding company of Lufthansa will take on the pension benefit scheme of British Midland, or BMI.

Lufthansa and BA owner International Consolidated Airlines Group PLC, or IAG announced an agreement in principle on the sale in early November,

Lufthansa says it plans to complete the sale in next year's first quarter, subject to antitrust authorities' approval.