Ryanair plans to accept IAG offer for Aer Lingus

LONDON, July 10 (Reuters) - Budget airline Ryanair said it would accept IAG's offer for its stake in Aer Lingus, paving the way for the British Airways-owner's 1.3 billion euro takeover of the Irish carrier to go ahead.

European Union approval for the deal is now the last remaining hurdle to IAG's plan to buy Aer Lingus (Other OTC: AELGF - news) and build a new transatlantic hub at Dublin airport.

IAG's bid for Aer Lingus had been conditional on agreement from Europe's biggest budget airline Ryanair, which holds a 30 percent stake in Aer Lingus.

Ryanair said in its statement that it planned to vote in favour of accepting the IAG offer but that its vote was subject to the offer being approved by the European competition authorities.

"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," Ryanair Chief Executive Michael O'Leary said in a statement on Friday. (Reporting by Sarah Young; editing by Kate Holton)