Gategroup on brink of deal for Lufthansa's European catering business

Lufthansa is in final negotiations on a sale of its LSG catering division’s European operations to Switzerland’s Gategroup as part of plans to focus on its airline business. The proposed sale announced on Tuesday comes as Lufthansa contends with low margins in a competitive market, with Lufthansa’s supervisory board expected to sign off on the deal on Dec. 3, sources close to the matter said. “The sale is part of Lufthansa’s new strategy to focus on its airline business,” the German carrier said. “Furthermore, the sale enables the new owner to further develop the catering business.” No financial details were disclosed. Airline catering company Gategroup said the deal, which would be subject to regulatory approval, was still under negotiation and parties were moving forward with discussions.<br/>