South Korea's Fair Trade Commission has approved Daemyung Sono Group's takeover of t'way Air (TW, Daegu). It paves the way for the company to finalise a KRW250 billion won (USD185 million) share purchase from YeaRimDang Co., Ltd.

The newspaper Chosun Ilbo reported that the parties were told on June 11 of the approval. ch-aviation has previously reported on the time taken to secure approval from the competition regulator. The Fair Trade Commission has now decided that the takeover will not adversely impact competition.

In February, Daemyung Sono Group agreed to purchase a 46.26% stake in t'way Air from YeaRimDang Co., Ltd., taking its total shareholding past 50% and giving it control of the low-cost carrier. The agreement ended a battle for control for the airline between the top two shareholders.

Among other changes, Daemyung Sono Group plans to simplify and modernise the current 41-strong t'way fleet, which includes six A330-200s, four A330-300s, three B737-8s, twenty-six B737-800s, and two B777-300ERs. t'way Air plans to focus on B737 types for its intra-Asian services and A330-300s and A330-900N (it has one and five on order, respectively) for long-haul flights. The A330-200s and B777-300ERs will be returned to the leasing airlines once new aircraft arrive to replace them.

Cleaning up t'way Air's balance sheet is also a priority for Daemyung Sono, which has emerged as a reason for the time taken for the Fair Trade Commission to approve the purchase. The agency wanted assurances and documents proving Daemyung had the financial capacity to support t'way Air beyond the immediate post-purchase period.

Meanwhile, the Fair Trade Commission approval will result in another shareholders' meeting to elect a new board. Candidates include Daemyung Sono Group Chairman Seo Jun-hyeok, who has taken a keen interest in his new airline asset. Given that the company controls the majority of the shares, voting in its preferred board candidates is likely to proceed smoothly.

The shareholder's meeting is scheduled to be held on June 24.