Korean Air to Finalize Asiana Airlines Acquisition
Deal News | Dec 03, 2024 | EIN
Korean Air is set to finalize its acquisition of a controlling stake in rival Asiana Airlines next week, marking the completion of a merger process that began in November 2020. The deal, valued at 1.5 trillion won ($1.07 billion), involves Korean Air acquiring approximately 131.57 million new shares in Asiana, resulting in a 63.9 percent stake. This acquisition will officially make Asiana a subsidiary of Korean Air. The merger has received approval from 13 out of 14 global competition authorities, with the final decision from the U.S. Department of Justice (DOJ) pending. Korean Air has worked closely with international regulators, including those from the European Union and the United States, to address antitrust concerns. If the DOJ does not oppose the merger by December 11, the merger will be deemed approved, completing Korean Air's strategic expansion.
Sectors
- Aviation
- Mergers and Acquisitions
Geography
- South Korea – Both Korean Air and Asiana Airlines are based in South Korea, and the merger has significant implications for the South Korean aviation market.
- United States – The U.S. Department of Justice's approval is still pending, highlighting the international dimension of the merger.
Industry
- Aviation – The transaction involves two major players in the airline industry, Korean Air and Asiana Airlines.
- Mergers and Acquisitions – The article discusses a significant acquisition and merger deal within the aviation sector involving Korean Air and Asiana Airlines.
Financials
- 1.5 trillion won ($1.07 billion) – Investment by Korean Air in the acquisition of a controlling stake in Asiana Airlines.
- 63.9% – The stake Korean Air will hold in Asiana Airlines after the acquisition.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Korean Air | Acquiring Company | Company | Korean Air is South Korea's largest airline and the acquiring company in this merger deal. |
| Asiana Airlines | Target Company | Company | Asiana Airlines is the target company being acquired by Korean Air. |
| U.S. Department of Justice (DOJ) | Regulatory Authority | Government | The DOJ is the last regulatory body whose approval is pending for the merger to proceed. |
| European Union | Regulatory Authority | Government | The EU regulators have been part of the negotiations to address international competition concerns. |