Korean eyes end-June for Asiana deal closure

Korean Air tentatively believes that its acquisition of rival Asiana Airlines will close by the end of June, following the submission of its post-merger integration plan. The airline confirms that the post-merger integration plan was submitted to Korea Development Bank, Asiana’s biggest creditor, on 17 March. To finance the Asiana acquisition, Korean secured W3.3b ($2.9b) through the issue of new shares, which it says indicates a “positive market response” to the planned acquisition. “We assume the deal will be finalised by the end of June this year, but the exact timing will be confirmed after completion of regulators’ approval on the acquisition from relevant countries,” says the carrier. The airline submitted applications to all overseas regulators in January. Turkey has already approved the merger, and the airline does not foresee other regulators raising any issues.<br/>