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Stobart and Virgin-backed Connect Airways receives EU approval for Flybe takeover

“Connect Airways can now progress with an exciting future based on a low-cost customer-centric regional connectivity strategy”

flybe plane
Connect completed the acquisition of Flybe in February

Connect Airways, the joint venture between Stobart Group Ltd (LON:STOB), Virgin Atlantic and New York hedge fund Cyrus Capital, has received clearance from European regulators for its £2.8mln takeover of Flybe.

“We are pleased to have received merger control clearance which means that Connect Airways can now progress with an exciting future based on a low-cost customer-centric regional connectivity strategy,” said Stobart chief executive Warwick Brady.

READ: Connect Airways nabs Virgin’s Mark Anderson for top job

Flybe, the struggling domestic airline, sold its assets and operations to Connect Airways in February.

In the same month, Connect also completed the acquisition of Stobart Air’s assets for £40mln.

Its plan is to the Virgin Atlantic brand to operate a network of regional flights provided by both Flybe and Stobart Air.

Stobart shares were down 1.6% to 120.2p in late-afternoon trading on Friday.

Quick facts: Stobart Group Ltd

Price: 126.6 GBX

LSE:STOB
Market: LSE
Market Cap: £474.31 m
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