British Airways and Spanish airline Iberia have signed a deal to merge and create one of the world's biggest airline groups. The merger, which was provisionally agreed in November, last year, is expected to be completed by the end of the year. In a statement the two companies said the merger would benefit shareholders, employees and customers. The new company will be called International Airlines Group, but the BA and Iberia brands will continue to operate as normal. The company will have its headquarters in London, with BA shareholders retaining 55% ownership of the company.