Brazilian airlines TAM and Varig signed a merger deal last week, seven months after announcing their tie-up. The merger takes effect around year-end and will create an airline that control 66% of the Brazilian market.
The deal needs approval from Brazil's anti-trust agency, which local analysts say will be a formality.
The new airline will be owned by BNDES - Brazil's development bank - TAM, Varig, and foreign creditors. TAM's stake is expected to be pegged at around 30%. FRBPar and other Varig shareholders will hold a 5% portion of the new airline while 40% will be allotted to the BNDES. The remaining shares will be split among foreign creditors.
Source: Flight International
