Chile’s LAN Airlines, SA announced the $3.7 billion purchase of Brazil’s TAM, SA making it the 3rd largest airline carrier in the world. The acquisition which will proceed as a merger and be known as LATAM Airlines Group, gives TAM 43% of the Latin American domestic market resulting in total annual sales of $8.5 billion. The transaction is expected to result in $400 million in savings for the newly merged entity.
The merged airline will offer flights to 23 countries with 116 different stops and will expand its freight business. The TAM stock will no longer be publicly traded and the LAN stock will become LATAM.