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Chile’s Lan airline has completed a takeover of Brazil’s Tam, creating the world’s second largest airline by market value, to be known as Latam.

After two years of negotiations, Tam shareholders agreed to the takeover.

The new company will have its headquarters in the Chilean capital, Santiago.

Brazil and Chile have enjoyed years of economic growth, which has brought about a massive increase in air travel but also recently tougher competition.

source: BBC.co.uk

Chile’s antitrust court, TDLC, has ordered a suspension of the merger process between LAN and TAM while it conducts an investigation of the competitive impact of the merger. The court ordered the suspension while it hears a petition filed by the National Consumers Corp, a consumer rights organisation.

The organisation, known as Conadecus, argues certain routes between Santiago and São Paulo and Rio de Janeiro will be operated under monopoly control if the merger goes through. Shares in TAM were down 6.1% in trading on Monday, while shares in LAN declined 1%.

source: centreforaviation.com