Brazil’s Council for Economic Defence (CADE) has approved the merger between LAN Airlines of Chile and TAM Airlines in a unanimous vote.
The Brazilian authority considers two conditions in its decisions, which are in line to what LAN offered to the Chilean Fiscalía Nacional Economica (FNE) last January, through an out-of-court agreement and were afterward reiterated by Chile’s antitrust court (TDLC).
Cade’s conditions included giving up two pairs of slots at the Guarulhos Airport for the Sao Paulo-Santiago route and an eventual resignation to one of the airline’s Alliances LAN and TAM are part of today.
TAM is presently part of the Star Alliance network while LAN Airlines is part of oneworld.
Chile’s antitrust tribunal approved the $3.2 billion tie-up on September 21st this year, creating the largest airline in South America.
Santiago-based LAN agreed to buy rival TAM in an all-stock transaction announced in August last year.
LATAM, as the new group will be known, will have a market value of $11 billion.
This is likely to overtake Singapore Airlines as the world’s second-largest airline after Beijing-based Air China.