Bloomberg News

Lan Takeover of Tam Recommended by Attorney at Brazil’s Cade

December 06, 2011

Dec. 5 (Bloomberg) -- Lan Airline SA’s $3.3 billion acquisition of Tam SA, Brazil’s largest airline by market value, received a second recommendation of approval by Brazilian authorities.

Gilvandro Araujo, general attorney at Brazil’s antitrust regulator, or Cade, recommended that the transaction proceed without restrictions, according to a report distributed in Brasilia.

In August, the Finance Ministry body in charge of analyzing mergers and acquisitions in Brazil had already announced its recommendation to approve the acquisition also without restrictions. The deal still needs to be voted on by Cade’s board. The anti-trust regulator may start voting on the deal as soon as Dec. 14, Araujo said in an interview from Brasilia.

Santiago-based Lan, Latin America’s largest airline by market value, agreed to buy Tam in an all-stock transaction on Aug. 13, 2010. The combination follows similar tie-ups among U.S. and European carriers trying to reduce operating costs and increase revenue by offering a broader global market to passengers.

--Editors: Helder Marinho, Andre Soliani

To contact the reporter on this story: Arnaldo Galvão in Brasília at agalvao1@bloomberg.net

To contact the editor responsible for this story: Helder Marinho at hmarinho@bloomberg.net


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