Etihad Airways said Thursday it has reached an agreement to acquire a 49% stake in Italian carrier Alitalia, Al Arabiya reported.
The two carriers have been in talks over the deal but Alitalia previously failed "to give assurances on restructuring steps that it now has provided Etihad," Bloomberg reported.
They both agreed on the principal terms and conditions to finalize the deal, a statement by Etihad Airways said Thursday.
Alitalia's deal is going to be Etihad's eighth equity investment in an airline.
The Abu-Dhabi based carrier is familiar with the strategy and has taken stakes in seven carriers from Australia to Ireland, including airberlin, Air Seychelles, Virgin Australia and Jet Airways.