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| Version 1 | Version 2 |
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| British Airways owner IAG buys BMI from Lufthansa | British Airways owner IAG buys BMI from Lufthansa |
| (40 minutes later) | |
| 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. | 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. | 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 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. | 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. | Lufthansa had signed a non-exclusive agreement with IAG in November, but had also been in talks with Virgin. |
| In a statement, Sir Richard Branson, chairman of Virgin Group, said: "BA is already dominant at Heathrow and their removal of BMI just tightens their stranglehold at the world's busiest international airport. | In a statement, Sir Richard Branson, chairman of Virgin Group, said: "BA is already dominant at Heathrow and their removal of BMI just tightens their stranglehold at the world's busiest international airport. |
| "We will fight this monopoly every step of the way as we think it is bad for the consumer, bad for the industry and bad for Britain." | "We will fight this monopoly every step of the way as we think it is bad for the consumer, bad for the industry and bad for Britain." |
| Job losses | Job losses |
| BMI employs more than 3,600 staff, but reported a £153m loss in the year to 2010. | BMI employs more than 3,600 staff, but reported a £153m loss in the year to 2010. |
| IAG chief executive Willie Walsh said: "Given the scale of BMI's losses, there is an urgent need to restructure the business. | IAG chief executive Willie Walsh said: "Given the scale of BMI's losses, there is an urgent need to restructure the business. |
| "Unfortunately, this will mean some job losses but we will secure a significant number of high quality jobs here in the UK and create similar new jobs in the future. | "Unfortunately, this will mean some job losses but we will secure a significant number of high quality jobs here in the UK and create similar new jobs in the future. |
| Mr Walsh said the restructuring would be carried out over a three year period. | Mr Walsh said the restructuring would be carried out over a three year period. |
| BMI, which is based in Castle Donington in Leicestershire, operates flights to Europe, the Middle East and Africa. | BMI, which is based in Castle Donington in Leicestershire, operates flights to Europe, the Middle East and Africa. |
| It has 8.5% of the landing slots at Heathrow, the UK's busiest airport, which are seen as the main attraction of a purchase. | It has 8.5% of the landing slots at Heathrow, the UK's busiest airport, which are seen as the main attraction of a purchase. |
| BMI also operates the bmibaby and bmi regional brands, which have no landing slots in London airports. | BMI also operates the bmibaby and bmi regional brands, which have no landing slots in London airports. |
| Lufthansa has the option to sell both bmibaby and bmi regional before the deal with IAG is completed. | |
| If Lufthansa does not sell bmibaby before the deal is completed, IAG said the price it would pay would be subject to a "significant" reduction. |