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Iberia-British Airways merger agreement still not approved; to be confirmed this month

26-Mar-2010 11:11 AM

Iberia's Board did not reach an expected agreement to approve a planned merger with British Airways on 25-Mar-2010, with the carrier confirming that "there wasn't a decision today and the board will keep working on the plan" (Dow Jones/Bloomberg/Reuters, 25-Mar-2010). BA stated that a merger accord is still expected to be signed this month, with British Airways commenting, “we have always said that we plan to sign the merger agreement in 1Q2010”. The two carriers announced an MoU in Nov-2009 after commencing talks in Jul-2008, covering a merger which would create the world's third largest airline by revenue, and have subsequently commented that a merger agreement would be confirmed in 1Q2010. The main reason behind the delay relates to BA's multi-billion pound pension fund deficit.