January 10, 2018 / 1:35 PM / 2 years ago

Israeli anti-trust regulator opposes El Al deal to buy Israir

FILE PHOTO - The logo of Israel's El Al Airlines is seen during a ceremony marking the arrival of the first of the airline's order of 16 Boeing 787 Dreamliner jets, at Ben Gurion International Airport, near Tel Aviv, Israel August 23, 2017. REUTERS/Amir Cohen

TEL AVIV (Reuters) - Flag carrier El Al Israel Airlines (ELAL.TA) said on Wednesday it received notice that the Anti-Trust Authority opposes its deal to buy smaller low-cost rival Israir from IDB Tourism.

“The company will study the authority’s decision when it is received and will weigh its options,” El Al said in a statement to the Tel Aviv Stock Exchange.

El Al reached a deal in July for its Sun d’Or unit to pay up to $24 million for Israir.

IDB Tourism was also to receive a 25 percent stake in Sun d’Or, which flies to 17 destinations in France, Italy, Switzerland, Greece and elsewhere in Europe.

Israir, which flies to 28 cities in Europe, has 650 employees and earned $11.7 million in 2016 but lost $1.5 million in the first quarter of 2017.

Reporting by Tova Cohen, Editing by Ari Rabinovitch

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