Air France Completes Deal With KLM Royal Dutch

Air France has acquired control of KLM Royal Dutch, the two carriers announced Tuesday, cementing their merger, which creates the world’s largest airline company.

The French and Dutch airlines said they had cleared the last hurdle in the merger they agreed to last year to create Air France-KLM. KLM shareholders tendered almost 42 million shares, representing 89.2% of the airline’s capital, in a share swap offer that closed Monday.

Air France is to issue nearly 46 million new shares to KLM shareholders who have agreed to exchange their stock, reducing the French government’s stake in the national carrier to less than 45% from about 54%.

Air France and KLM Royal Dutch agreed to merge in September, creating a global airline with combined revenue of about $23.5 billion. American Airlines parent AMR Corp. had been the largest airline company and had revenue of $17.4 billion last year.

Shares in the new company will begin trading today in Paris, Amsterdam and New York.

French Prime Minister Jean-Pierre Raffarin said, “Setting up this new group marks very important progress in the consolidation of the European transportation sector and, notably, benefits the consumer.”