MercoPress. South Atlantic News Agency

Brazilian regulators approve LAN/TAM merger to become Latam’s largest airline

LATAM would be between the top five global airlines

Brazil's civil aviation authority passed on Thursday the planned combination between Brazilian airline TAM and Chilean rival LAN with no restrictions, giving a boost to their project to create Latin America's largest airline and the third largest in the world.

The authority known as ANAC said in the government official gazette that the process was approved “in the same mould that it was presented.” The media office of ANAC had confirmed on Wednesday the decision to award permission to TAM and its largest rival LAN.

The news comes after antitrust regulators in Chile, where LAN is based, halted in January the integration between the carriers, citing it could potentially harm competition. The combined airline, which would be named LATAM, would become Latin America's biggest airline.

The process still requires authorization from other regulatory entities in Brazil.

Shares of TAM, Brazil's largest airline, rose for a second day in Sao Paulo, gaining 1.3% to 36.04 Real. Shares of LAN rose 1.6% in Santiago.

LAN and TAM have inked the final terms of the merger to create Latin America's biggest carrier and one of the world's top 10 airlines.