Ryanair formally withdraws Aer Lingus offer

Ryanair has formally withdrawn its offer to take over Aer Lingus following the Government's decision not to accept its bid for the State's 25% shareholding in the former flag-carrier.

In a brief statement, the budget airline said: "Following the Irish Government’s decision not to accept its all cash offer of €1.40 per share (which valued Aer Lingus Group Plc at €748m), Ryanair acknowledges that its Offer cannot now be successful and accordingly the Offer is now withdrawn."

The Government had on January 22 knocked back Ryanair's approach, saying that it "greatly" undervalued the former state airline and that a merger would be likely to have “a significant negative impact” on competition in the market.

Transport Minister Noel Dempsey said the Government took the view that a monopoly in this area “would not be in the best interests” of Irish consumers.

Ryanair boss Michael O'Leary had described the Government decision as a '"wrong one",