British Airways and Iberia shareholders have approved plans for their merger following meetings in London and Madrid today.
The crucial meetings were among the final steps to implementing the deal, which is scheduled to take effect on 21 January 2011.
BA had to obtain approval of its shareholders for its ownership to be transferred to a new holding company, BA Holdco, which will hold slightly more than 90% of BA, with Iberia holding the remainder.
The three resolutions related to various aspects of the merger, including undertaking a solvent reorganisation of the company and shareholder approval of the necessary technical steps to effect the merger. Each motion was approved by more than 99% of those voting.
This, plus corresponding votes by Iberia shareholders in Madrid, now clears the way to the full International Consolidated Airlines Group merger, under which Iberia and BA Holdco will be combined under a single holding company. BA will hold 56% of the combined entity, with Iberia having the remaining 44%.
A BA spokeswoman says: "This is an historic day for British Airways with shareholder approval giving us the green light to merge with Iberia.
"We've had a strong relationship with Iberia for more than a decade and this merger will enhance both airlines' strategic and financial positions, creating benefits for our customers, shareholders and staff."
Iberia Chairman Antonio Vázquez says: "We are very happy that the shareholders gave their approval to the merger of Iberia and British Airways. Without a doubt, it is a historical agreement that will create a global group to lead a future consolidation process in the airline business. It is certainly to their advantage, since it will bring great value to the business of both airlines and will lead to major synergies."
The final step from BA's standpoint will be a rubberstamping of today's decision by its Court. Dealings in BA and Iberia sales will be suspended on 21 January 2011, with dealings in ICAG shares starting on 24 January.
Source: Air Transport Intelligence news
