Good example of an Overcapacity Merger.
Points to note:
-the friendly terms of the 'union'
-the fact that the companies will maintain their structure
-the emphasis on the Synergies to be gained,
BA and Iberia agree merger
By Pilita Clark in London and Mark Mulligan in Madrid
Published: November 12 2009 12:02 Last updated: November 13 2009 09:02
British Airways and Iberia on Thursday night agreed the terms of a merger to create Europe’s third-largest airline by revenue, one of the biggest deals in the global aviation industry.
But the two airlines have agreed that Iberia will be able to terminate the accord if it is unhappy with BA’s handling of its swollen pension scheme, which has been one of the sticking points in the deal, first announced in July last year.
Read the whole article at:http://www.ft.com/cms/s/0/ee333056-cf7f-11de-b876-00144feabdc0.html?nclick_check=1