Delta Air Lines To Take Additional 32% Stake In Aeromexico
Delta Air Lines has announced
that they intend to acquire up to an additional 32% of the outstanding capital
stock of Grupo Aeromexico S.A.B. de C.V. thereby strengthening the airlines'
Currently, Delta owns
approximately 4.1% of the outstanding shares of Grupo Aeromexico and holds an
option to acquire an additional 8.1%. Separately, the Delta pension trust holds
options to acquire approximately 4.6% of Grupo Aeromexico. Following completion
of the tender offer, Delta and the Delta pension trust collectively would own
and/or have options to acquire up to a total of 49% of the outstanding shares
of Grupo Aeromexico.
"This new investment
demonstrates Delta's confidence in Mexico's future and deepens our relationship
with Aeromexico, cementing Delta's long-term commitment to the customers we
serve to, from and through Latin America," said Delta President Ed
Delta intends to commence the
tender offer once required regulatory approvals in Mexico and the United States
have been obtained. The tender offer will be subject to terms to be disclosed
and customary closing conditions, including the acquisition by Delta of a
minimum number of shares in the tender offer. The transaction also is subject
to approval by the Boards of Directors of Delta and Grupo Aeromexico.
Delta and Aeromexico launched
their first codeshare in 1994. In 2011, Delta entered into an enhanced
commercial agreement with Aeromexico, and in 2012, Delta invested USD 65
million in shares of Grupo Aeromexico, the parent company of Aeromexico. In
March, Delta and Aeromexico filed an application with the U.S. Department of
Transportation seeking antitrust immunity for a new joint venture on flights
between the U.S. and Mexico. The request also was submitted for approval to the
Mexican antitrust authorities, the Comision Federal de Competencia Economica
(Federal Economic Competition Commission).