Shares in Aer Lingus owner IAG fall on scrapped Air Europa takeover

Competition regulators were concerned the deal would reduce competition in the Spanish domestic market and on international routes to the country

Air Europa provides connections to Latin America as well as serving destinations in Europe.

Shares in Aer Lingus owner IAG fell more than 5% on the back of the airline group confirming it has scrapped plans to buy Spanish airline Air Europa.

It is understood that the remedies IAG was prepared to offer in order to gain regulatory approval were not going to be enough to get the deal across the line.