Delta Air Lines has launched a cash tender offer
through the Mexican Stock Exchange to acquire up to an additional
32% of the outstanding capital stock of Grupo Aeroméxico S.A.B. de
C.V. for MXN $53.00 per share.
Delta says the difference from the previously
announced tender price of MXN $43.59 is the result of “interim
exchange rate movements and other factors”.
Completion of the cash tender offer is
subject to certain conditions including acceptance of the offer by
holders of at least twenty-five percent of the outstanding
shares of Grupo Aeroméxico and receipt of required antitrust
approvals in Mexico.
Currently, Delta owns approximately
4.2% of the outstanding shares of Grupo Aeroméxico and
holds options to acquire an additional 12.8%.
subscribed, following completion of the tender offer, Delta would
own and/or have options to acquire up to a total of 49% of
the outstanding shares of Grupo Aeroméxico.
“This is the
next step in expanding our longstanding relationship with
Aeromexico, a partnership built on our shared commitment to our
customers in the U.S. and Mexico,” said Ed Bastian, Delta’s Chief
Executive Officer. “The tender offer and investment will further
strengthen the relationship that will be established when our
joint cooperation agreement is implemented in the second quarter.”
Delta and Aeroméxico launched their first codeshare in 1994.
In 2011, Delta entered into an enhanced commercial agreement with
Aeroméxico, and in 2012, Delta invested USD $65 million in shares
of Grupo Aeroméxico, the parent company of Aeroméxico.
2015, Delta and Aeroméxico entered into a joint cooperation
agreement relating to flights between the United States and Mexico
and the parties filed an application with the U.S. Department of
Transportation (DOT) seeking approval of the agreement and
immunity from the United States antitrust laws for the joint
The agreement also was submitted for approval to the
Mexican antitrust authorities, the Mexican Comisión Federal de
Competencia Económica (Federal Economic Competition Commission or
COFECE). In April 2016, COFECE issued its resolution regarding the
proposed joint cooperation agreement, through which, the
authorization of this agreement was subject to the acceptance of
and compliance with certain requirements.
In December 2016, the
DOT issued a final order granting approval of, and immunity from
the United States antitrust laws with respect to, the joint
cooperation agreement, subject to certain conditions. Delta and
Aeromexico have accepted the conditions required by COFECE and DOT
and are in the process of implementing the required remedies.
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