British Airways-owner International Airlines Group (IAG) is close to agreeing a deal worth around £300m with Germany's Lufthansa to buy Bmi's main business, including its prized take-off and landing slots at Heathrow.

The sale and closing of the deal remain subject to conditions including a binding purchase agreement, further due diligence and regulatory clearances. It is envisaged that the purchase agreement will be signed in the coming weeks and the aim is for the transaction to be completed in the first quarter of 2012.