North America

Delta Announces Intention to Acquire Additional Shares of Grupo Aeromexico

Aeromexico Boeing 777-200

Delta Air Lines intends to acquire up to an additional 32 percent of the outstanding capital stock of Grupo Aeromexico through a cash tender offer for MXP$43.59 per share.

This investment will strengthen the airlines’ partnership, provide more travel options for customers in the U.S. and Mexico and deliver the industry’s best customer experience.

Currently, Delta owns approximately 4.1 percent of the outstanding shares of Grupo Aeromexico and holds an option to acquire an additional 8.1 percent. Separately, the Delta pension trust holds options to acquire approximately 4.6 percent of Grupo Aeroméxico. Following completion of the tender offer, Delta and the Delta pension trust collectively would own and/or have options to acquire up to a total of 49 percent of the outstanding shares of Grupo Aeroméxico.

“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,” said Delta President Ed Bastian.

Delta intends to commence the tender offer once required regulatory approvals in Mexico and the United States have been obtained. The tender offer will be subject to terms to be disclosed and customary closing conditions, including the acquisition by Delta of a minimum number of shares in the tender offer. The transaction also is subject to approval by the Boards of Directors of Delta and Grupo Aeroméxico.

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, Delta and Aeroméxico filed an application with the U.S. Department of Transportation seeking antitrust immunity for a new joint venture on flights between the United States and Mexico. The request also was submitted for approval to the Mexican antitrust authorities, the Comision Federal de Competencia Economica (Federal Economic Competition Commission).

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