(Bloomberg) -- Deutsche Lufthansa AG has offered concessions to European Union merger watchdogs in an attempt to head off competition concerns over its €325 million ($356 million) investment in ailing Italian carrier ITA Airways. 

The German firm made the submission ahead of the EU’s initial Jan. 15 deadline to either clear the stake or open an in-depth probe, according to people familiar with the matter who spoke on condition of anonymity.

Italian Finance Minister Giancarlo Giorgetti said recently that the EU is likely to embark on a so-called phase 2 review, adding several more months to the investigation process. 

While the people declined to identify the details of the offer, potential remedies previously reported by Bloomberg include the disposal of slots at Milan Linate airport, which is dominated by ITA and the wider Lufthansa group, encompassing regional carriers such as Swiss, Brussels Airlines and Austrian. 

Lufthansa and the European Commission in Brussels declined to comment. 

As part of a deal announced on May 25, Lufthansa plans to invest €325 million via a capital increase for a 41% stake, with the Italian government contributing an additional €250 million. Lufthansa also has an option to purchase all remaining shares at a later date. 

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The move from the German flag carrier marks the latest attempt to resurrect the ailing Italian carrier, which officially ceased operations in 2021. A scaled-back version remained under government ownership and has soaked up billions of euros in state support since then. 

Lufthansa’s swoop has drawn support from the Italian government, which is keen to ensure the long-term health of a national airline that has long been a burden on taxpayer’s pockets. 

In September, Italian Prime Minister Giorgia Meloni hit out at the EU’s executive arm for dragging its feet to examine the deal, even before it had been formally filed for approval, saying that “the same European Commission that asked us for years to find a solution for ITA’s woe, when we find a solution it blocks it.”

(Updates with EU response in fifth paragraph)

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