Korean Air wins much-awaited EU approval to acquire Asiana Airlines

Korean Air’s high-profile acquisition of Asiana Airlines is nearing completion after the European Union's (EU) competition authority granted approval for the deal, Thursday. According to the nation’s flag carrier, the European Commission (EC) concluded its review of Korean Air’s fulfillment of all required conditions to acquire cash-strapped Asiana. The approval paves the way for the long-awaited launch of the mega carrier, as the U.S. Department of Justice (DOJ) is expected to conclude its review of the deal and grant approval in line with the EC's decision. Korean Air said it submitted the EC approval to U.S. authorities and plans to finalize the transaction by the end of December. “Korean Air satisfied all conditions set by the EU competition authority,” an official at the carrier said. In February, the EC granted conditional approval, requiring Korean Air to meet two preconditions: the operation of a replacement carrier on four overlapping European routes and the sale of Asiana’s cargo business. In response, Korean Air designated T’way Air as the replacement carrier for the four routes from Incheon to Barcelona, Frankfurt, Paris and Rome. Air Incheon was also picked as a preferred bidder to purchase Asiana’s cargo business. Korean Air plans to inject 800b won ($573m) and secure a stake of 63.9% in Asiana on Dec. 20 to finalize the long-delayed acquisition. Asiana Airlines will then be incorporated as a subsidiary of Korean Air.<br/>