Korean Air and Asiana Stock Acquisition Date Delayed Again... Impact of Corporate Merger Review Delay

Second Deadline Extension

[Image source=Yonhap News]

[Asia Economy Reporter Jihee Kim] Due to delays in the Fair Trade Commission's review of the Asiana Airlines merger, Korean Air has postponed its stock acquisition schedule again.

Korean Air issued a corrected disclosure on the 30th stating, "We are extending the deadline for acquiring Asiana Airlines shares by three months due to delays in the merger notification and unmet transaction preconditions."

Korean Air originally planned to participate in Asiana Airlines' 1.5 trillion KRW capital increase by June 30, after passing merger reviews in major countries, to acquire a 63.9% stake. However, the acquisition date was previously postponed by three months to September 30. With this second extension, the scheduled acquisition date is now December 31.

Korean Air stated, "The scheduled date is calculated based on the completion of domestic and international merger approvals for both our company and the issuing company, including government approvals," adding, "The date may be delayed compared to the initial schedule depending on circumstances."

It is increasingly likely that the Fair Trade Commission and overseas competition authorities will not complete their merger reviews by the end of the year. Accordingly, there are expectations that Korean Air's acquisition of Asiana Airlines shares will take place next year. Korean Air filed merger notifications in January this year with the Fair Trade Commission and competition authorities in nine essential reporting countries, including the United States and the European Union (EU). So far, it has passed merger reviews by competition authorities in Turkey and Taiwan.

The Fair Trade Commission and overseas competition authorities are likely to approve the merger on the condition that Korean Air adjusts its routes. The Ministry of Land, Infrastructure and Transport is reportedly considering revoking Korean Air's traffic rights and slots (airport aircraft takeoff and landing capacity) and redistributing them to LCCs (low-cost carriers).

This content was produced with the assistance of AI translation services.