Chilean Competition Tribunal probes LAN, TAM merger - Reuters

Sat 29th January 2011 08.26 IST Clock

SANTIAGO 29th (Reuters) - Chilean airline antitrust tribunal opened an investigation into the merger of LAN Chile's flagship airline and the Brazilian carrier TAM, a move could delay or even block to create the world's largest.

The Chilean airline LAN.SN LFL.L said earlier this month, provides for the merger with TAM (TAMM4.SA) to nine months to be completed within six to seven. [ID: nN19206493]

But consider the consumer demand Chilean Competition Tribunal of the country, if the transaction complies with local regulations. This means that the merger not go forward, "until the court approves it.

A decision on the website of the Court published on Saturday ordered that "the process is suspended in time."

LAN and TAM announced plans in August and are due for approval in both countries.

Industry analysts internet is effective is to buy the Brazilian airline, Cueto family with the high proportion of what one of the leading companies in the world would be created.

Cueto family is the main shareholder of the LAN, as one of the most profitable companies in Latin America.

LAN share closed 3.19 per cent in Santiago on Friday in a general sell-off. (Reporting by Fabian Cambero, writing by Helen Popper, edited by Eric Beech)