Icelandair Group has formally called off the proposed takeover of local rival WOW air (Reykjavik Keflavik) as it is unlikely that certain conditions specified in the preliminary agreement will be met.
"The planned acquisition of Icelandair Group of WOW air will not go through. The Board of Directors and management of both companies have worked on this project in earnest. This conclusion is certainly disappointing," Interim President and CEO of Icelandair Group Bogi Nils Bogason said.
The group underlined in a filing to the Iceland Stock Exchange that the agreement was cancelled in mutual agreement between the two airlines.
Icelandair initially expected to finalise the takeover during a shareholders' meeting scheduled for November 30. However, the carrier later said that it was unlikely that certain unspecified criteria included in the agreement would be met by this date.
"The Board does not intend to submit to the shareholders’ meeting a proposal to postpone decision-making on the purchase agreement," Icelandair Group said.
The news comes shortly after WOW air returned two A320-200s and two A330-300s to the lessor to readjust capacity amid its worsening financial situation.
