Korean Air to finalize controlling-share acquisition of Asiana Airlines next week
A man walks next to the logo of Korean Air airlines during an organised media tour, at the company's Cabin Crew Training Center in Seoul, June 27. Reuters-Yonhap
Korean Air said Tuesday it will finalize its acquisition of a controlling share in rival Asiana Airlines next week, completing the merger deal between Korea's leading carriers that has been sought over the past four years.
Korean Air said it will invest 1.5 trillion won ($1.07 billion) in a third-party share issuance by Asiana Airlines on Dec. 11 to acquire about 131.57 million new shares, or a 63.9 percent stake, in the rival carrier.
The move is the final step in the merger deal first announced in November 2020. Once the payment is complete, Korean Air will become Asiana Airlines' largest shareholder, officially making Asiana its subsidiary.
Korean Air had received merger approvals from 13 of the 14 competition authorities globally, with only the decision by the U.S. Department of Justice (DOJ) pending.
To address international competition concerns, Korean Air worked with regulators, including those in the European Union and the United States, to make adjustments.
If the DOJ does not object before Dec. 11, the merger will be considered approved, as the DOJ only opposes mergers by filing lawsuits. (Yonhap)