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China Eastern will take over Shanghai Airlines in an 8.9 billion yuan ($1.3 billion) deal that will create a carrier with more than half the market share in the coastal city. China Eastern will swap 1.3 of its Shanghai-listed A shares for each Shanghai Airlines share. China Eastern also said it will raise around seven billion yuan through a sale of new yuan-denominated A shares and Hong Kong-listed H shares to improve its financial position. Shanghai Airlines will become a wholly owned unit of China Eastern and retain its brand, but it will be de-listed from the Shanghai stock exchange after the merger.