Deals
Icelandair to Buy Wow in Marriage of Ailing Atlantic Rivals
- Flag-carrier seals all-share deal to acquire discount upstart
- Competitors squeezed by direct low-cost Europe-U.S. flights
Wow Air has been seeking a partner ahead of a possible listing to help carry it through the tougher winter period as oil prices rise.
Photographer: Joel Saget/AFP via Getty Images
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Icelandair Group Hf reached a surprise agreement to buy discount rival Wow Air, bringing together the island nation’s two financially embattled airlines.
The carriers will continue to operate under separate brands while aiming to better compete on routes linking Europe with North America, they said Monday. Shares of Icelandair surged on the deal, which will create a combined company with about 3.8 percent of that market.