United Airlines and Continental Airlines will merge in an all-stock deal worth over $3 billion that will create the world’s largest carrier with annual revenues of nearly $29 billion.
The two American carriers have entered into a definitive merger agreement, which is expected to close in the fourth quarter of this year. The merged entity will be known under the brand name of United Airlines and will be based in Chicago, the headquarters of United.
Continental is based in Boston, which will cease to exist post-merger. “‘The all-stock merger brings together two of the world’s premier airlines, creating a combined company well positioned to succeed in an increasingly competitive global and domestic aviation industry,'” both companies said in a statement.
source: Rediff business