China Eastern Airlines to acquire Shanghai Airlines

China Eastern Airlines to acquire Shanghai Airlines

China Eastern Airlines has announced that they are now acquiring smaller rival airline company Shanghai Airlines.

The deal is worth around 7 billion Yuan and it would be conducted in an all-share deal.

Every share of Shanghai Airlines will be exchanged for 1.3 shares of China Eastern Airlines.

With this China Eastern Airlines would now dominate the flights from its Shanghai base.

Incidentally, both of these airline companies have been making losses in the recent times.

Industry experts believe that the merger would give them better resources to compete against bigger rivals like Air China and China Southern Airlines.