French Dutch airline Air France-KLM is set to increase its share in Scandinavian airline SAS, the company announced on Friday.
The airline already owns 20% of the SAS shares and the projected purchase of shares held by investment companies Castlelake and Lind Invest would give Air France-KLM a majority stake of 60%.
“Air France-KLM becoming the majority owner would mark a defining moment for SAS,” SAS chief executive Anko van der Werff said. “It brings not just stability but will also allow for deeper industrial integration.”
The Danish government will keep 26.4% of the shares, making it the second largest shareholder.
Air France-KLM said regulatory approval for the move is expected in the second half of next year.
Dutch arm KLM is currently grappling with threatened strike action by ground workers over pay. Legal action by KLM averted a strike on Saturday, but unions have called for a 9-hour strike to go ahead on Wednesday.
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