Aer Lingus Airbus A320
British Airways owner IAG had made a successful €1.4bn bid for Irish Government's 25% stake in Aer Lingus in May Reuters

Ryanair has agreed to an offer made by British Airways owner International Airlines Group (IAG) for the company's 29.8% share in Aer Lingus.

After months of debate, the airline companies have finally come to an agreement that will see IAG take control over Irish flag carrier airline Aer Lingus as Ryanair will vote in favour of the motion regarding the acquisition in Aer Lingus's EGM on 16 July.

Chief executive of Ryanair Michael O'Leary said in a statement: ""We believe the IAG offer for Aer Lingus is a reasonable one in the current market and we plan to accept it, in the best interests of Ryanair shareholders.

"The price means that Ryanair will make a small profit on its investment in Aer Lingus over the past nine years."

The Competition and Markets Authority ordered Ryanair to sell its Aer Lingus stake to IAG, but now European competition regulators might have a problem with the deal and represent the last hurdle before a deal can be finalised.

The acquisition comes after the Irish government sold its 25% stake in Aer Lingus to IAG for €1.4bn (£1bn, $1.56bn) in May 2015.

Ryanair's O'Leary claimed in the statement that it had increased its market share in Ireland and said: "We will continue to deliver the vast majority of Ireland's traffic and tourism growth in the coming months and years."

Apart from market share gain, Ryanair's share price has almost tripled since the acquisition of the stake in Aer Lingus in 2006, whereas Aer Lingus shares rose less than 1.5% since the acquisition. The profit over Ryanair's investment in Aer Lingus is unlikely to be very significant for the company's shareholders.