Delta Air Lines has reached an agreement to take over Northwest Airlines, creating the world’s biggest carrier.
Delta stated that the combined airline will have an enterprise value of $17.7 billion.
The deal was given the green light by the board of both companies on Monday.
Delta CEO Richard Anderson will head the company which will be based in Atlanta.
Northwest shareholders will receive 1.25 Delta shares for each Northwest share they own.
This is a premium to Northwest shareholders of 16.8% based on Monday’s closing stock prices.
This comes one year after the two emerged from Chapter 11 bankruptcy protection.
The deal will also need antitrust approval.