There may well be three large blocks - AF/KL/AZ, LH/LX (possibly OS too) and then BA/IB, with smaller carriers like AY, EI, VS etc. remaining independent.
As far as AZ is concerned, this is "last chance saloon", so if the airline's unions mess this up, that's it; I think that a major part of any deal with AZ will be getting approval of the airline's unions and ensure that the extent of the surgery necessary is fully understood and accepted before the sale goes through.