LAN and TAM merger approved to form Latin America’s biggest airline

Brazilian airline TAM shareholders have finally agreed to tender all their individual shares for 0.9 shares of LAN Airlines for ultimately creating Latin America’s biggest airline LATAM. With this decision LATAM’s creation has now been finally approved.

It may be recalled that the merger of the two airlines was announced in August 2010. With the merger, it was decided to create LATAM at an estimated US$14,500 billion.

The creation of LATAM will now account for 6 percent of global air traffic.

Chile’s antitrust court had given its approval to LAN for the merger in September 2010. The approval was however given with certain conditions. Later, the Brazilian Conselho Administrativo de Defesa Econômica or Council for Economic Defense (CADE) also approved the merger in December during the same year. Also, during the same month on December 21 the merger with TAM was also approved by 99.99 percent of LAN shareholders.

LAN is the leading Chilean carrier serving nearly 76 destinations across the world. While, TAM continues to be the Brazilian market leader serving 18 cities in South America, Europe and United States.

With the launch of LATAM, 115 destinations in 23 countries are expected to be served.