LONDON - Shareholders in Britain and Spain overwhelmingly backed the £4 billion ($8.3 billion) merger of their two national airlines yesterday, clearing the last significant hurdle before the deal's scheduled completion in January.
The merger - which now requires only legal formalities to be finalised - will create Europe's second-largest
carrier by market value after Air France-KLM.
The two brands will be retained by the newly created International Airlines Group, which will be registered and headquartered in Spain, but listed in and run from Britain.
Competition regulators on both sides of the Atlantic have already given the green light to the plan, as has Britain's pensions regulator, which became involved because of the deficit in BA's final-salary pension scheme.
The BA side of the deal was backed by 99 per cent of shareholders at a meeting in London yesterday. BA has long insisted that the deal is the right thing to do.
This is despite the economic problems in Spain that are worrying the markets, despite Monday's bailout of Ireland and the launch of a stability mechanism.
BA shareholders will hold 56 per cent of the merged company and Willie Walsh will retain his position as chief executive. Iberia's shareholders get 44 per cent, and its president, Antonio Vazquez, will become the chairman.
Economic problems sparked by the downturn and the sharp decline in transatlantic travel, particularly the business travel that is BA's lifeblood, first got the two sides talking about a deal that is expected to reap savings of €400 million ($705 million) from the fifth year.
Some smaller shareholders in BA have raised objections to the new company's registration in Spain, where future shareholder meetings will likely be held as a result.
- Independent
