Chile competition tribunal probes LAN, TAM merger

* LAN, TAM union would create one of world's top airlines

SANTIAGO

Jan 29 (Reuters) - Chile's anti-trust tribunal has opened a probe into the merger between Chile's flagship airline LAN and Brazil's TAM, a move that could delay or even block a bid to create one of the world's biggest airlines.

The Chilean airline (LAN.SN) LFL.L said earlier this month it expected the merger with TAM (TAMM4.SA) to be completed within six to nine months.

But Chilean consumers asked the country's competition tribunal to investigate whether the deal conforms to local regulations. That means the merger cannot move forward until the tribunal has given it the go ahead.

A resolution published on the court's website on Saturday ordered that "the process is suspended in the intervening period."

LAN and TAM announced their plans in August and are waiting for regulatory approval in both countries.

Industry analysts say LAN is effectively buying the Brazilian airline as the Cueto family is set to emerge with the major stake in what would be one of the world's top carriers.

The Cueto family is the main shareholder of LAN, considered one of Latin America's most profitable airlines.

LAN shares closed down 3.19 percent in Santiago on Friday in a general sell-off. (Reporting by Fabian Cambero; Writing by Helen Popper; Editing by Eric Beech)

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