LAN, TAM Airlines Merge to Create LATAM Giant

Chile's LAN Airlines said Friday it has completed its takeover of Brazilian airline TAM, creating Latin America's biggest airline, LATAM Airlines Group.

The deal, which began in May, concluded after 99.9 per cent of TAM shareholders exchanged their shares of the company for those of LAN, at a rate of 0.9 shares of the Chilean airline for each share of the Brazilian airline in the last step to create the aerospace giant.

"The creation of this group of airlines is an opportunity to take South America to the world and to allow us to position ourselves to operate in an increasingly competitive environment due to the continuing consolidation of the global airline industry," said LATAM executive vice president and CEO Enrique Cueto said in a statement.