Icelandair Group has abandoned its plan to take over budget carrier Wow Air.
The company states that the acquisition of Wow has been “cancelled”, days after it warned that pre-conditions for a shareholders’ meeting on the matter were unlikely to be met.
“That situation remains unchanged,” says Icelandair Group.
“Therefore, it is unlikely that the board of directors of Icelandair Group can recommend to the shareholders that they agree to the purchase agreement.”
Chief executive Bogi Nils Bogason says the acquisition of Wow “will not go through”, adding that the situation is “disappointing”.
Icelandair Group is not intending to propose a deferral of a decision on the acquisition to shareholders.
“Due to this situation, both parties agree to abandon the aforementioned purchase agreement,” it adds.