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Korean Air to finalize acquisition of controlling stake in Asiana Airlines

Published: 11 Dec. 2024, 10:55

Korean Air and Asiana Airlines planes on the tarmac at Incheon International Airport on Nov. 2, 2023. [YONHAP]

Korean Air plans to finalize its acquisition of a controlling stake in rival Asiana Airlines on Wednesday, completing the merger deal between Korea's leading carriers that has been sought over the past four years, according to company officials.

Korean Air plans to invest 1.5 trillion won ($1.07 billion) in a third-party share issuance by Asiana Airlines later in the day to acquire 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, Asiana Airlines will officially become a Korean Air subsidiary on Thursday.

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.

If the DOJ does not object before the final payment, the merger will be considered approved, as the DOJ only opposes mergers by filing lawsuits.

To address international competition concerns, Korean Air worked with regulators, including those in Europe and the United States, to make adjustments.

Korean Air plans to appoint a new CEO and key executives for Asiana Airlines next month. Over the next two years, it will operate Asiana Airlines as a subsidiary while working on brand and organizational integration.

Yonhap