Iberia and British Airways formally sign Spanish merger document
British Airways and Iberia signed (29-Jun-2010) a merger plan document, required under Spanish law to implement the merger. The agreement was signed by BA Holdco, a new Spanish company formed on behalf of British Airways, Iberia and International Consolidated Airlines Group (IAG), the implementation vehicle for the merger. The signing follows a merger agreement made on 08-Apr-2010. The merger timetable remains unchanged. It is expected that both airlines will hold shareholder meetings to approve the EUR8 billion transaction in Nov-2010.The principal merger steps are:
- Iberia will hive off assets and liabilities to a new subsidiary which will continue to operate its business;
- BA Holdco will be inserted above British Airways by means of a UK court-approved arrangement;
- Iberia and BA Holdco will merge with IAG via a Spanish law merger;
- Shareholders of British Airways and Iberia will receive shares in IAG which will then become the owner of the airlines.
Completion of the merger remains subject to regulatory approval from the European Commission. It is also conditional on the UK's The Pensions Regulator not challenging the pension recovery plan, agreed between BA and its pension trustees, and approval of that plan by Iberia before 30-Sep-2010. [more]