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China Eastern Airlines shareholders OK merger with Shanghai Airlines

BEIJING, Oct 09, 2009 (Xinhua via COMTEX) --

Companies: China Eastern Airlines Corp. Ltd. (CEA), Shanghai Airlines Co (SAHIF)

Shareholders of both China Eastern Airlines Corp. (600115.SH; CEA.NYSE) and Shanghai Airlines (600591.SH) Friday approved their merger plan.

Chin Eastern said in July it would swap 1.3 of its A-shares for every Shanghai Airlines share. Shanghai Airlines, with 1.3 billion outstanding shares, will be delisted from the Shanghai Stock Exchange after the merger with China Eastern.

The deal is expected to create a carrier with more than half the market share in Shanghai.

China Eastern Chairman Liu Shaoyong said Friday the airline had obtained anti-monopoly approval from Chinese Ministry of Commerce, a crucial prerequisite for the merger to go ahead.

China Eastern is China's third largest air carrier by fleet size, after China Southern Airlines (600029.SH; ZNH.NYSE) and Air China (601111.SH).

Copyright (C) 2009 Xinhua Economic News. All rights reserved

News Provided by COMTEX

Companies: China Eastern Airlines Corp. Ltd. (CEA), Shanghai Airlines Co (SAHIF)


Related terms: carrier, china, commerce, merger, shanghai

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