Tuesday, March 14, 2017

Delta buys additional 32% of Aeromexico for $620 million

Delta Air Lines has acquired an additional 32% of Grupo Aeromexico’s outstanding shares for approximately $620 million, and now owns 36.2% of Aeromexico.

Atlanta-based Delta, which already owned a 4.2% stake in Mexico City-based Aeromexico, acquired 228 million additional shares at MXN53 ($2.71) per share in the tender offer. Delta holds options to acquire another 12.8% stake in Aeromexico, so eventually it could own 49% of the carrier.

Delta and Aeromexico late last year gained regulatory approval to establish an antitrust-immunized joint venture for transborder flying. Both carriers are members of the SkyTeam alliance.

Delta CEO Ed Bastian said the completion of the tender offer “is yet another milestone that strengthens the Delta-Aeromexico relationship as we move toward implementing our joint cooperation agreement in the second quarter.” 

(Aaron Karp - ATWOnline News)

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