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Lufthansa closes deal to sell British Midland to BA parent company IAG

BERLIN – German airline Lufthansa AG says it has completed a 172.5 million pound ($276 million) deal selling its loss-making British Midland Ltd. subsidiary to the parent of rival British Airways.

Lufthansa said in a statement Friday the sale to BA parent International Airlines Group took place after the close of business Thursday.

Lufthansa says it expects to lose money on the deal, but that the costs will amortize within a year and that the deal will ultimately strengthen its financial position.

It says “price adjustments have been agreed as part of the transaction structure” and that the specific net purchase price will be determined at the end of the second quarter.

Lufthansa and IAG announced an agreement in principle on the sale in early November.