[Featured Stocks] Merger Expectations Drive Sharp Rise in Korean Air and Asiana Airlines

[Asia Economy Reporter Junho Hwang] On the 29th, shares of Korean Air and Asiana Airlines group stocks surged simultaneously in the stock market.

As of 9:28 a.m. that day, Hanjin KAL Preferred and Korean Air Preferred shares jumped more than 29% compared to the previous session. Asiana IDT also rose 29.71% from the previous session, and Asiana Airlines increased by 17.52%.

The stock price surge on this day appears to be influenced by the previous day’s announcement from the UK Competition and Markets Authority (CMA) that it "judged there are reasonable grounds to accept" the remedial measures proposed to resolve monopoly concerns following the merger of Korean Air and Asiana Airlines.

Korean Air reportedly proposed to the CMA that market competitiveness could be maintained if a UK airline newly operates the Incheon?London route. Korean Air stated, "We view this decision positively" and added, "We will sincerely cooperate so that the UK competition authority’s merger review can be concluded promptly."

However, the merger still needs to pass merger reviews in the United States, the European Union (EU), Japan, China, and other regions.