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Delta announces purchase of up to 20% of Latam

The two airlines expect the operation to be approved by their respective countries of operation within the next 18 months

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According to information from Dow Jones Newswires and Valor Econômico newspaper, American Delta Airlines has just announced that it will acquire 20% of Brazilian Latam through a stock purchase. The total investment is estimated at $ 1.9 billion ($ 16 per share).

Delta will pay Latam $ 350 million to implement the strategic partnership. A portion of this amount ($ 150 million) will be paid over the next three days, and the rest in quarterly quotas.

Through the deal, after the public offering of shares, Delta will also be able to buy more Latam securities, but may not exceed the limit of 24.99% of the Brazilian company’s capital.

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The agreement also has provisions for the joint operation of the two companies on international flights connecting the United States with South American countries.

As part of the operation, Delta Airlines intends to sell its 9% stake in Gol in the coming months.

Both companies are expected to obtain authorization from the countries where they operate to implement the strategic alliance within the next 18 months.