USA: Delta Closes $620m Acquisition In Aeromexico

Delta Air Lines announced the successful completion of its cash tender offer that commenced on Feb. 13, 2017 through the Mexican Stock Exchange to acquire up to an additional 32 percent of the outstanding capital stock of Grupo Aeroméxico S.A.B. de C.V. for MXN $53.00 per share, which expired at 1:00 p.m. Mexico City time on March 10, 2017.

The offer was oversubscribed, with Delta acquiring 228 million shares representing 32 percent of the outstanding shares of Grupo Aeroméxico and 39.8 percent of the shares tendered in the tender offer, for an aggregate purchase price of approximately USD $620 million/MXN $12.1 billion. All conditions to completing the tender offer, including receipt of required regulatory approvals in Mexico, have been satisfied.

With the completion of the tender offer, Delta owns 36.2 percent of the outstanding shares of Grupo Aeroméxico and holds options to acquire an additional 12.8 percent for a total of 49 percent of the outstanding shares of Grupo Aeroméxico.

“We are pleased to successfully complete the tender offer,” said Ed Bastian, Delta’s Chief Executive Officer. “This is yet another milestone that strengthens the Delta- Aeroméxico relationship as we move toward implementing our joint cooperation agreement 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.

In March 2015, Delta and Aeroméxico entered into a joint cooperation agreement relating to flights between the United States and Mexico.

That joint cooperation agreement has been reviewed by regulatory authorities in the U.S and Mexico and will be implemented in the second quarter.