Delta Air Lines Inc. is boosting its ambitions in the world’s emerging markets as Chief Executive Officer Richard Anderson ups the carrier’s stake in Grupo Aeromexico SAB to as much as 49 percent.
The offer of 43.59 pesos a share was 52 percent more than the closing price on Wednesday Nov. 18, when Aeromexico was valued at 20.4 billion pesos ($1.22 billion). Delta is seeking as much as 32 percent more of the stock, doubling its current holdings in Mexico’s largest airline.
(Delta recently announced it would expand service to Merida from Dallas-Ft. Worth, Texas in early 2016.)
Delta’s plan builds on a history of acquisitions outside the U.S., most recently an accord in July for 3.6 percent of China Eastern Airlines Corp. for $450 million. In September, the U.S. carrier more than tripled its stake in Brazil’s Gol Linhas Aereas Inteligentes SA, and in 2012 agreed to buy 49 percent of Richard Branson’s Virgin Atlantic Airways Ltd.
Delta rose 1.6 percent to close at $48.51 in New York. Aeromexico surged 33 percent to 38.29 pesos in Mexico City.
Anderson often has spoken enthusiastically about the Mexican, Chinese and Brazilian markets, in interviews and in his weekly recorded message for employees. That includes his long-term goal of a hub in Shanghai. His aim: seek a foothold in all major regions for Delta, the world’s third-biggest airline.
Aeromexico, a Delta partner in the SkyTeam alliance, generated about 54 percent of 2014 sales from flights to North America and elsewhere outside its home market. The carrier surged 41 percent this year through Wednesday, beating Mexico’s benchmark IPC index but trailing the parent of discount airline Volaris, whose shares more than doubled.
Delta signed its first cooperation agreement with Aeromexico in 1994 and invested in the Mexico City-based carrier for the first time in 2011, taking a $65 million stake. It has been adding bits of Aeromexico since then, holding 4.1 percent of the shares and options for 8.1 percent more. A related Delta pension trust has options for another 4.6 percent.
In March, Delta applied with the U.S. and Mexican governments to create an immunized joint venture partnership with Aeromexico, letting the carriers collaborate on routes, pricing and other details without antitrust concerns. Anderson has taken that approach with other global partners.
“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,” Delta President Ed Bastian said in a statement.
more recommended stories
Rate President Donald Trump’s Job Performance
Newsmax.com, America’s leading independent news service,.
Mérida, among the 10 best cities for doing business: “Entrepeneur”
During the present municipal administration Mérida.
Trump told Shinzo: “I can hand you over ’25 million Mexicans’ to give you a taste of the migration problem”
President Donald Trump reportedly made some.
Mérida breaks ground for the new “Litoteca Nacional de Yucatán”
MÉRIDA, Yuc.- The inauguration ceremony of.
New Companions And Fun Time In Video Chat
If you are willing to find.
The Hermitage of San Dieguito in Tekax
Built 373 years ago, according to.
Mobile App Development: Step-by-Step Guide
What does it take to bring.
Profepa closed down four properties for affecting the ecosystem
The Federal Office of Environmental Protection.
InDriver, ready to rumble in Mérida!
inDriver, an online transportation service, is.
Canada, US & Mexico joint bid will host World Cup 2026
The United States, Mexico and Canada.