Mexico: Competition watchdog approves Aeromexico-Delta joint venture

Mexico’s federal competition commission approved Aeromexico’s deal with Delta with certain conditions, Aeromexico said in a statement on Monday May 2.

Aeromexico and Delta are seeking a broader alliance, and they have asked the U.S. government for immunity from antitrust law so they can coordinate better flight connection times and prices.

Delta expects to increase its stake in Aeromexico during the second half of 2016, to seize the economic opportunities offered by Mexico, the incoming Delta chief executive, Ed Bastian, said.

“The reason why we are investing in Aeroméxico and are excited Aeroméxico, is that (Mexico’s) a wonderful country with 120 million people, is one of the closest in the world trading partners,” Bastian said at a recent news conference.

Delta, with 17% of the outstanding shares of the Mexican company, seeks to raise its stake to 49% of the shares.

This would be achieved through a public equity offering, an operation that was conditionally approved by the antitrust authority in Mexico, the Federal Competition Commission (CFC).

This aims to improve the position of Delta in Latin America, which also benefits customers of Aeromexico, the US company said.

Full Content: Reuters

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