International Consolidated Airlines Group has agreed to buy Spanish carrier Air Europa for 500 million euros ($612.55 million) with payment to be deferred until 2026, news website El Confidencial reported on Friday, citing unnamed sources.

The two companies reached the deal on Thursday, El Confidencial said.

IAG’s Spanish unit Iberia declined to comment while Air Europa’s owner Globalia was not immediately available for comment.

British Airways parent IAG had originally agreed to buy Air Europa for 1 billion euros in November 2019, but has been pushing to reduce the price amid the travel crisis caused by the pandemic.

For the sale to proceed, the Spanish government must waive its right to appoint two directors to Air Europa’s board, one of the conditions of a 475 million euro state aid package approved last month.

(Reporting by Nathan Allen. Editing by Jane Merriman)

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