Korean Air announced on Tuesday that it will finalise its acquisition of a controlling stake in rival Asiana Airlines next week, completing a merger deal between Korea’s leading carriers that has been in the works for four years.
Korean Air plans to invest 1.5 trillion won ($1.07 billion) in a third-party share issuance by Asiana Airlines on December 11, acquiring approximately 131.57 million new shares, or a 63.9 percent stake, in the rival carrier.
This step marks the final phase of the merger, initially announced in November 2020. Upon completing the payment, Korean Air will become Asiana Airlines’ largest shareholder, officially designating Asiana as its subsidiary.
The merger has already received approvals from 13 out of 14 global competition authorities, with the U.S. Department of Justice (DOJ) being the only pending decision.
To address international competition concerns, Korean Air has collaborated with regulators, including those in the European Union and the United States, to implement necessary adjustments.
If the DOJ does not raise objections by December 11, the merger will be considered approved, as the DOJ only opposes mergers by filing lawsuits.
Source: Yonhap
