Icelandair to take over rival WOW Air

Icelandair has agreed to buy WOW air in an all-share deal that would see WOW shareholders own 5.4% of Icelandair Group’s stock. A group announcement said the airlines will continue to operate under separate brands after the transaction, with the combined carriers having a transatlantic market share of around 3.8%. Icelandair sees the acquisition as creating opportunities for both airlines to provide stronger competition to carriers in the international market. Icelandair Group CE Bogi Nils Bogason said “There are many opportunities for synergies with the two companies…The tourism industry is one of the cornerstones of the Icelandic economy and it is important that flights to and from Iceland will remain frequent.” The acquisition is subject to a vote of Icelandair Group’s shareholders, due in 3-4 weeks. <br/>