Lufthansa said on Wednesday it had agreed to receive a stake of 10% in Latvian airline airBaltic, as the German airline seeks to strengthen its international network.

Deutsche Lufthansa AG will buy a 10% stake in Latvian flag carrier AirBaltic AS as the German carrier group continues its consolidation push in Europe.

LONDON (Reuters) -German airline group Lufthansa is in talks with Spanish carrier Air Europa about the possibility of acquiring a minority stake, according to two sources with knowledge of the talks. The airline is 20% owned by BA-parent IAG, which backed out of taking full ownership last year due to regulatory concerns.

Lufthansa said on Wednesday it had agreed to receive a stake of 10% in Latvian airline airBaltic, as the German airline seeks to strengthen its international network. The stake will be issued in the form of convertible shares currently at a subscription price of 14 million euros,

Lufthansa Group has agreed to take a 10% convertible shareholding in Air Baltic, ahead of the Latvian carrier's upcoming initial public offering. The agreement - valued at €14 million ($14.6 million) - involves Lufthansa's acquiring convertible shares which would be changed to ordinary shares once the offering takes place.