IAG’s planned acquisition of Air Europa is being looked at by EU antitrust regulators, with IAG being given till December 3 to submit evidence on why the deal should go ahead.
IAG share price declined 0.46% on Friday as the EU continues to seek reasons as to why the company, which already owns Iberia and Vueling, would need to add a third carrier to its name. EU regulators believe that the acquisition of Air Europa would give IAG an unfair advantage over lucrative routes in and out of Spain.
IAG is asking for more time to provide evidence to back up its acquisition plans, and the regulators have granted the extension. However, investors remain rattled by the attention the deal is getting from the antitrust agency, and the stock is seeing increased offers in the market.
The rejection at 177.46 on Thursday set the stage for Friday’s decline, which is about to test the 167.08 support. If this support fails, then 156.40 becomes the next target. 143.94 is potential support which only becomes available if 156.40 gives way.
On the flip side, a bounce on 167.08 allows the bulls to potentially push towards 177.46, with 187.24 and 194.94 serving as additional upside targets if the advance continues. Uptrend restoration could become possible if 205.32 gives way.
