Korean Air’s 1.8 trillion won ($1.4 billion) bid for smaller rival Asiana Airlines won approval from the European Union, moving the deal one step closer to reality after the firms offered to address concerns raised over competition.
The European Commission said on Tuesday that Korean Air’s offer to sell part of Asiana’s cargo business as well as to enable entry for competitors on certain passenger routes between South Korea and Europe, was enough to smooth the passage of the deal to approval.
The commission’s nod moves the deal closer to completion, after it recently obtained regulatory approval from the Japanese competition authority. The merger still requires regulatory approval from the United States, which isn’t expected to raise any serious concerns after Korean Air’s most recent remedy package signed with the EU.