Delta to buy Northwest in $3.6bn swap deal

Delta Air Lines Inc agreed to buy Northwest Airlines Corp in a $3.63 billion stock deal that would create the world's largest carrier, according to a report on the website of Bloomberg.

The airline will keep Delta's name, Atlanta headquarters and chief executive officer Richard Anderson. The purchase will lead to a total of $1 billion in new revenue and savings and won't shut any hubs, the companies said yesterday in a statement.

The report said each Northwest share will be exchanged for 1.25 Delta shares, and the deal will include one-time cash costs of $1 billion.