Pardon my ignorance - but what will Easyjet bring to LH (especially considering the cost), that is cannot (and is not) doing by itself, right now?
For the lower cost operations - Eurowings is there - and a much better placed 'competitor' in that market - via providing to the lower costs of the operation, and needs of that market segment.
However, buying a LCC - might grate even further against the majority of LH's brands - which are 'full-service'/legacy carriers. Surely, on the domestic/regional flights - these airlines compete (and sometimes successfully) against the LCCs, however - they do not on long-haul flights. Easyjet has yet to launch, or truly take steps in that direction, and Eurowings are already there with the necessary aircraft. While acquiring Easyjet would benefit in greater market share - the progressive path towards integration would be fraught with obstacles (significant costs, legal obstacles) and difficulties (branding changes, crew integration, labour policies revisited, short/medium term focus on integration and maximization of benefits to the parent company) - and those should not be discounted.
In my opinion, of a greater deal of importance - is this deal to Easyjet. Has LH been 'doing it all right'? What autonomy, would being acquired by a legacy carrier - provide them? Would they be integrated into Eurowings? Or, be two brands - competing against each other, in the same company? Moreover, their successes have come doubly based on fighting the 'legacy carriers' but also on finding niches where they can capitalize. Both proved to be the vehicles to success when they needed them to survive hardships, or downturns. Now, having proven their point - can such a relationship exist - when their future trajectory puts them in increasing competition with these carriers?
It's hard to conceptualize, perhaps in text - but we are one economic downturn away from LH being in difficult straits, and the possibility of Easyjet making a play for them via buyout. It was fascinating to watch AmericaWest 'merge' with US Airways, and then - see that 'merge' with American Airlines. While not a perfect "apples to apples" analogy - it demonstrates some of the more extreme possibilities. At the time, there were a myriad of other happenings, and complexities which aided in these merger's necessities - however, from a distanced view - it looked as if a LCC, operated well on what little it had, enough so to seek out a weakened 'legacy' and then that entity (despite having the lowest customer satisfaction ratings in the class) then 'merged' with the Big One while it was weakened in Bankruptcy. It's not inconsequential to assume that EasyJet's LCC recipe is not the winning one, medium and long term - as the travel grows. They are an order away from being able to operate on long-haul routes - and can revolutionize that area as well. A buyout now would provide short-medium term gains, but might prevent future growth and successes - and based on their past - they've been winning anyway, so why give that away now?