LSTAM delayed again by Chile antitrust investigation

Discussion in 'Central/South America' started by jbcarioca, Mar 19, 2011.  |  Print Topic

  1. jbcarioca
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    jbcarioca Gold Member

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    From Reuters this morning:

    * TAM, LAN shares tumble after Chile steps up merger probe
    * Analysts see deal delayed for at least nine months
    * LAN admits that probe could put off process indefinitely (Adds LAN statement)
    By Guillermo Parra-Bernal
    SAO PAULO, March 18 (Reuters) - The shares of Brazilian airline TAM tumbled on Friday after Chilean regulators decided to probe the proposed takeover of the company by rival LAN, Latin America's biggest-ever airline combination.
    Chile's antitrust tribunal upheld a prior ruling by the country's consumer defense agency to investigate the LAN-TAM deal's possible impact on fares. Santiago-based LAN had urged the tribunal to ignore the agency petition, concerned a probe could delay or even block the merger.
    The decision by Chilean regulators means the combination, expected to help LAN and TAM save $400 million annually, could be delayed at least nine months until the second half of 2012, according to analysts. LAN said in a statement the duration of the probe is uncertain but expects the combination to be approved by June. [ID:nN188
     
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  2. Gaucho
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    Gaucho Gold Member

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    Hmmmm.... I wonder why someone would want to derail this merger.....?
     
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  3. jbcarioca
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    jbcarioca Gold Member

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    There is opposition from Brazil by a large competitor and from Chile because of the presumed loss of national autonomy. They would have huge dominance in Chile-(Brazil-Argentina-Peru) and Brazil-(Chile-Argentina-Peru). It is interesting watching, but nearly all the action (lack of) seems to be in Chile.
     
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  4. Gaucho
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    Gaucho Gold Member

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    Makes sense.... I wonder what AA thinks of the merger...
     
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  5. jbcarioca
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    jbcarioca Gold Member

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    My speculation is that for them the question is whether they LATAM group will merge FF programs and join a single alliance or not. So far there has not even been a single elak here in brazil so we're all in the dark about their plans.
     
  6. Gaucho
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    Gaucho Gold Member

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    I would assume the merged would go with One World, or...?
     
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  7. jbcarioca
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    jbcarioca Gold Member

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    Nobody knows. if they do go with only one I'd speculate on Star, but because LAN was a founding OW carrier I would not be at all surprised to see that either. The only thing I am certain of is that they will not be ST.

    My speculation of Star is based on the persistent rumors, mostly from Portugal, that TAP will be taken over by LATAM, to give them a stronger European feed. That is a strategy to conflict with IB, and BA will be very unhappy about that because the MAD-LA traffic will be instantly threatened by the LATAM combination. Star, OTOH, will be ticked to get Southern Europe strength to complement their Northern Europe power, and probably without any major antitrust hassles.

    these are my speculations, nothing more. What do you think?
     
  8. Gaucho
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    Gaucho Gold Member

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    SkyTeam is the most pathetic of all Alliances....
     
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  9. Gaucho
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    Gaucho Gold Member

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    and proof of this is the sorry fact that they accepted AR into their ranks.... :eek:
     
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  10. jbcarioca
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    jbcarioca Gold Member

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    OTOH, their home city does have the only Gold in the hemisphere. Congratulations!
     

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