The International Airlines Group (IAG) was formed during 2011 and is the parent company of Aer Lingus, British Airways, Iberia, and Vuelling. It is a Spanish registered company with shares traded on both the London and Spanish stock exchanges. Source the annual report and other public announcements and analysts reports to analyze the manner by which the business combination was achieved. You may visit the group’s website http://www.iairgroup.com.

Required:
1. Explain the legal processes and structuring that took place to affect the business combination of IAG and the subsidiaries.
2. Analyze the acquisition method with respect to the business combination of IAG and its subsidiaries:

(a) Who was the acquirer? Provide evidence of control.

(b) What were the significant assets and liabilities of the subsidiaries that were the subject of fair valuation?

(c) How was goodwill determined? Explain the special complexities relating to goodwill determination for this business combination.