Brazil antitrust regulator approves American Airlines' $100m investment in Azul
Brazil's CADE cleared American Airlines' $100 million investment in Azul Linhas Aéreas, giving the US carrier a minority stake of about 8%, but attached conditions to the approval after an appeal by Abra Group.
Brazil's antitrust regulator, the Conselho Administrativo de Defesa Econômica (CADE), approved a $100 million investment by American Airlines in Azul Linhas Aéreas. The deal gives the US carrier a minority stake of close to 8% in the Brazilian airline.
The approval came with conditions. CADE tied its clearance to the signing of a merger control agreement between the regulator and the parties, and to full compliance with it. According to the regulator, that instrument turns safeguards that had previously been private in nature into obligations directly enforceable before CADE.
The decision followed disagreement in the sector. CADE's technical staff had already issued a favourable opinion on the transaction, but Abra Group appealed. Abra Group is the holding company that controls the Brazilian carrier Gol, which has a long-standing commercial partnership with American Airlines. CADE's highest instance upheld the conditional approval despite the appeal.
The investment comes amid Azul's financial restructuring. The airline emerged from bankruptcy protection under Chapter 11 in the United States in February, after completing a reorganisation that included investments from US carriers.
Sources
- aviacionaldia.comBrasil aprueba inversión de 100 millones de dólares de American Airlines en Azul Linhas Aéreas