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COMUNICADOS DE PRENSA
PAL DESISTS FROM ITS REJECTION TO THE MERGER BETWEEN LAN AND TAM
- After analyzing LAN's appeal before the Supreme Court of Chile and confirming that LAN's objections have only partial and minimal impacts on the mitigation measures imposed by the TDLC, PAL believes that the merger meets the requirements of Decree Law N°211 and adequately protects free competition.
- LAN agreed to reimburse PAL for costs and expenses incurred during the legal proceedings and subsequent appeal before the Supreme Court, while PAL agreed to desist from all actions against the merger, both in Chile and in Brazil.
- CADE's approval in Brazil is the next regulatory step for the creation of LATAM Airlines Group.
Santiago, October 25th, 2011–LAN announces that Chilean airline PAL has decided to withdraw its appeal before the Supreme Court of Chile against the merger process between LAN and TAM. After detailed analysis of the resolution of the Tribunal de Defensa de la Libre Competencia (TDLC), Chile's antitrust court, and of LAN's appeal before the Supreme Court, which was submitted after the appeal filed by PAL, the company is convinced that LAN accepts the large majority of the mitigation measures imposed by the TDLC. Furthermore, PAL recognizes that the mitigation measures that LAN is appealing are either not essential, or LAN proposes reasonable alternatives.
PAL will abstain from presenting any further objection in Chile or abroad and requested LAN cover the costs incurred by PAL in connection with the proceedings at the TDLC and its appeal before the Supreme Court. Accordingly, and pursuant to a settlement agreement between both companies dated October 25, 2011, LAN agreed to pay PAL 116,091Unidades de Fomento (approximately equivalent to US$5 million).