This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Delta, Northwest Close Merger

Updated from Wednesday, Oct. 29

As expected, antitrust regulators at the Justice Department have approved the merger between Delta Air Lines (DAL - Get Report) and Northwest (NWA).

Hours after receiving antitrust clearance, the airlines officially closed the merger.

The deal, announced in April, will create the largest airline in the world, surpassing AMR (AMR), the parent of American Airlines. The carrier will be based in Atlanta and retain the Delta name.

Currently, Delta is the second-largest carrier, while Northwest is fifth. "We're pleased the DOJ has decided not to challenge the Delta-Northwest merger," said Delta spokeswoman Betsy Talton.

Northwest, founded as a mail carrier in 1926, will disappear as a separate entity. Delta will acquire its shares in a deal valued at about $2.6 billion.

Observers had widely expected the merger to be approved. "After a thorough, six-month investigation, during which [it] obtained extensive information from a wide range of market participants -- including the companies, other airlines, corporate customers and travel agents -- the [Justice Department's antitrust division] has determined that the proposed merger between Delta and Northwest is likely to produce substantial and credible efficiencies that will benefit U.S. consumers and is not likely to substantially lessen competition," the division said in a prepared statement.

"The two airlines currently compete with a number of other legacy and low cost airlines in the provision of scheduled air passenger service on the vast majority of nonstop and connecting routes where they compete with each other," the regulators said.

The merger's principal opponents have been the International Association of Machinists, the largest airline union, and the Association of Flight Attendants. Both unions represent workers at Northwest, but not at Delta, and now face union elections that will determine whether workers want to maintain representation.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
LCC $0.00 0.00%
DAL $42.01 0.62%
TSLA $214.81 1.60%
YHOO $37.22 0.76%
AAPL $92.59 -0.70%


Chart of I:DJI
DOW 17,715.47 +54.76 0.31%
S&P 500 2,054.55 +3.92 0.19%
NASDAQ 4,727.3670 +10.2730 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs