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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

The merger of two major Latin American airlines has been approved, creating the largest carrier in the region.

Brazil’s anti-trust authorities said they approved the merger of the Brazilian airline TAM with Chile’s LAN, first proposed in 2010.

The new airline, LATAM, is valued at about $14.5bn (£9.4bn) and will represent 6% of global air transport.

Last year, TAM and LAN flew more than 45 million passengers and 754,777 tonnes of cargo.

The combined airline would fly to 115 destinations in 23 countries, with a 40,000-strong workforce.

source: bbc.co.uk