Delta makes bid to increase Aeromexico stake

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Delta Air Lines has positioned itself to increase its stake in Aeromexico from less than 5% to as much as 49%.

Delta has made a cash tender offer of approximately $2.63 per share for up to 32% of Grupo Aeromexico’s outstanding capital stock. The offer is pending regulatory approval from the United States and Mexico, as well as the boards of both carriers.

Via a $65 million investment in 2012, Delta owns 4.1% of Aeromexico’s shares, along with an option to acquire an additional 8.1%. Its pension trust also has options to acquire an additional 4.6%.

The two carriers, both SkyTeam members, have cooperated since their first codesharing agreement in 1994. Earlier this year, Delta and Aeromexico also filed for antitrust immunity to create a $1.5 billion joint venture so they can plan services and set fares.

A 49% stake would bring Delta’s investment up to par with the 49% Virgin Atlantic stake it acquired in 2012. The carrier is invested in several other carriers around the world, including China Eastern Airlines and Brazilian low-cost carrier Gol.
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Source: Business Travel News

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