Delta closes USD 620m investment in Aeromexico

Delta Air Lines has closed its tender offer for nearly a third ofAeromexico Group, investing roughly USD 620 million in the Mexican carrier.

Atlanta-based Delta acquired 228 million additional shares in Aeromexico’s holding company under the oversubscribed offer that closed on 10 March, it says today. It now holds a 36.2% stake in the airline.

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“This is yet another milestone that strengthens the Delta-Aeromexico relationship as we move toward implementing our joint cooperation agreement in the second quarter,” says Ed Bastian, chief executive of Delta, in a statement.

Aeromexico and Delta will launch an immunised joint venture covering their flights between Mexico and the USA on 1 April.

Delta paid Ps53 (USD 2.70) per share for the additional stake in Aeromexicounder the offer that was launched on 13 February.

The US carrier has the option to acquire an additional 12.8% stake inAeromexico Group for a 49% share in the airline.

Delta first disclosed plans to increase its stake in Aeromexico in November 2015. It initially invested USD 65 million in the Mexican carrier in 2012.

The story has been updated to reflect an investment of USD 620 million, not USD 260 million as initially reported