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LAN and TAM to continue merger process

written by | October 7, 2011

South American airlines LAN Airlines and TAM have decided to continue their merger process after analysing the ruling of Chile’s antitrust court (TDLC).

In a joint statement, the airlines said they believed “mitigation measures imposed by the TDLC do not significantly impact the synergies generated by the transaction and do not modify in any material respect the companies’ joint strategic development plans. From the analysis, the estimated impact on the expected synergies would not exceed US$10 million per year, reducing by such amount the total previously announced synergies of US$400 million.”

The airlines have also appealed to Chile’s Supreme Court on three other antitrust mitigation measures which the companies believe to be “unconstitutional and disproportionately severe.”


The planned merger is expected to be implemented in the first quarter of next year.

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