The Transport Minister Paschal Donohoe has welcomed Ryanair's decision to accept the IAG takeover bid for Aer Lingus as an 'important development'.

Meanwhile, EU regulators are reported to be on the verge of giving the deal their backing in what would be the final hurdle to the takeover ahead of an Aer Lingus EGM next week.

According to Reuters, IAG has improved concessions to quell competition worries.

Transport Minister Paschal Donohoe says these developments are good for the airline's future.

Ryanair has confirmed they will endorse the IAG offer for their shareholding in Aer Lingus Group PLC.

The Ryanair board have said they believe the offer - of €1.4 bn - 'maximises' Ryanair shareholder value.

Ryanair holds 29.8% of Aer Lingus.

The board will now vote in favour of the deal at the Aer Lingus EGM next Thursday, and also to give the Irish government a 'golden share' over Aer Lingus's Heathrow slots.

"The price means that Ryanair will make a small profit on its investment in Aer Lingus over the past 9 years,” said Ryanair CEO Michael O’Leary.

“We wish IAG well with their takeover of Aer Lingus."

"Ryanair will work with whomever the government sells its 25% stake to (if it isn't sold to us), we would welcome any other financially strong airline/investor who acquires this stake, and who could then work with Ryanair and other shareholders to restore shareholder value", he added.

Newstalk.com's business editor Vincent Wall says Ryanair's approval is a big step towards the IAG takeover being finalised.