OSLO, July 6 (Reuters) - Norwegian Air (NAS.OL) has agreed to buy domestic peer Wideroe for 1.13 billion crowns ($106 million) as the reborn airline looks to strengthen its position in its home region.
"The transaction is expected to provide significant benefits for travellers, employees and shareholders, and to strengthen the combined Norwegian and Wideroe as a key part of critical domestic infrastructure," Norwegian Air said in a statement.
An important part of the regional infrastructure, Wideroe owns 40 Bombardier Dash 8 aircraft, and three Embraer E190-E2 jets, with seat numbers in each plane ranging from 39 to 110.
The deal comes only two years after Norwegian Air emerged from bankruptcy protection with a smaller fleet and its debt almost wiped out, having raised cash.
Norwegian Air said the two carriers had very limited overlap on routes, and it saw potential annual synergies from the acquisition of 200-300 million crowns ($18.8-28.2 million).
Persons:
Privately, Wideroe, Louise Breusch Rasmussen, Anna Ringstrom, Mark Potter
Organizations:
Bombardier Dash, Embraer, Norwegian Air, Boeing, Victoria, Thomson
Locations:
OSLO, Norwegian, Scandinavia's