DOJ Approves $2.8B Delta-Northwest Merger

Atlanta, GA (AHN) - The Department of Justice has officially approved the $2.8 billion all-stock merger transaction of Delta Air Lines Inc. and Northwest Airlines, creating the world's largest carrier.

The merged company will keep the Delta brand, with Northwest becoming an interim wholly owned subsidiary, NWA Inc. Headquarters will be in Atlanta, Georgia.

Anti-trust officials said the merger "is likely to produce substantial and credible efficiencies that will benefit US consumers and is not likely to substantially lessen competition," according to the Financial Times.

The merger was announced six months after the two airlines agreed to merge. The combined company would insulate the surge in fuel costs.

Northwest shareholders will receive 1.25 Delta shares for each Northwest share they own or $9.99 for every Northwest common share based on Delta's closing price Wednesday.

The world's largest airline now has 75,000 employees worldwide and will serve more than 375 cities in 66 countries. The two airlines, which serviced 126 million passengers in 2007, is expected to generate revenues at $35 billion annually.