Icelandair and WOW merger discontinued

Golli.

The Icelandair group will not accept the purchase of WOW air, reports RÚV. According to Icelandair's statement on the Iceland Stock Exchange, the decision to revert to the purchase agreement signed on November 5 was a mutual decision of the two companies.

In a statement issued on November 26, the Icelandair Group baderted that it was unlikely that WOW air would meet all the requirements of the purchase agreement before a shareholders' meeting to be held on November 30. The latest statement from the company indicates that the situation remains unchanged. On this basis, Icelandair Group's Board of Directors can not recommend to its shareholders to proceed with the purchase agreement. The council intends to propose a postponement of the decision-making at the meeting tomorrow.

"The management and directors of both companies have worked unreservedly on this project. The result is certainly a disappointment, "said Bogi Nils Bogason, CEO of Icelandair Group. He thanked the management of WOW air for its cooperation and wished the best to the owners and staff of the company.

Skúli Mogensen, CEO and founder of WOW Air, said it was clear from the start that the merger was an ambitious project. "We thank the management of the Icelandair Group for its cooperation in this ambitious project and wish the management and staff of the Icelandair Group all the best possible."

When asked if layoffs would be planned in the company, Skúli did not rule out the possibility, saying "that could be the case". Skúli is in talks with another party about the purchase of WOW air, but has refrained from commenting. to whom the party is or where the discussions were Svanhvít Friðriksdóttir, public relations officer of WOW, said that the company was in a safe position to continue its activities, but did not want to confirm for how long. Employees were informed that they would receive their pay as usual at the end of the month.

Icelandair's shares fell sharply after the announcement of the purchase, indicating a 10% drop around 11 am this morning.