Two of Europe’s biggest airlines, British Airways and Spain’s Iberia, have agreed to merge. The deal involves no cash, just an equity exchange. The details, below:
AP: The company would take the form of new holding company that owns the two current carriers. Iberia would own 45 per cent of the new company, and British Airways 55 per cent, Iberia said.
The deal is expected to be signed in the first quarter of 2010 and be approved by shareholders by the end of that year, the Spanish carrier said. The deal would need regulatory and shareholder approval.
Iberia also would be able to pull out of the agreement if any final deal between British Airways and the administrators of its deficit-ridden pension fund is not satisfactory for Iberia. This has been a stumbling point in merger talks that began in July 2008.