Madrid – Shareholders of Iberia SA and British Airways PLC voted Monday to approve a merger of the two flag carriers and the creation of a new Madrid-based holding company, International Airlines Group.
The $8.9 billion deal will result in the world's sixth-biggest airline by sales, Iberia Chairman Antonio Vazquez told a special shareholders meeting in Madrid.
Negotiations on the merger began in 2008, leading to agreement in April, and the European Commission gave its approval in July.
The transaction should be completed Jan. 21 and shares of IAG are to begin trading in London and Madrid on Jan. 24. BA shareholders will have 56 percent of the holding company.
Hailing shareholders' approval of the deal, Vazquez said he felt he had accomplished one of the goals he set when he first came to Iberia.
Iberia and BA, which plan to retain their respective brands and routes, will have a combined fleet of 420 airplanes flying to destinations in more than 100 countries.
Executives from the two carriers said earlier that they expect the merger to generate 400 million euros ($510 million) in annual savings by the fifth year.
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