FRANKFURT, March 27 (Reuters) – Lufthansa is looking to merge the European operations of its catering unit LSG with a peer as it struggles with low margins in a competitive market on the continent, people close to the matter said.
Lufthansa has provided information to potential bidders and has asked them to make offers for the business in early April, the people said, adding that Lufthansa was not interested in a deal with private equity.
Austria’s Do&Co and Switzerland’s Gategroup are expected to make offers for the European LSG operations, the people said, adding that given its low profitability and low expected value even medium-sized Do&Co could do a deal without a partner.
Lufthansa reiterated that it was considering options for LSG, while Gategroup declined to comment and Do&Co was not immediately available for comment. (Reporting by Arno Schuetze Additional reporting by Ilona Wissenbach Editing by Tassilo Hummel)