Aviation
Commercial /
Brazil
Merging on sight?
Azul and Latam together likely to happen, says bank
Airbus A319 da Latam
Por Rafael Luiz Canossa - A319, CC BY-SA 2.0, via Wikimedia Commons
Rafael Ramos
6/13/2021
The purchase of Latam by Azul has received investments since the beginning of the pandemic. According to a report by Bradesco BBI, which was produced by analysts Victor Mizusaki and Pedro Fontanta, the acquisition could be closer than we imagine, in up to 90 days. The report also shows that the company's purchase was reclassified as “very likely”.
The report also raised the buy recommendation for Azul and Latam shares, as the two should increase with the negotiation.
Josue Isai Ramos Figueroa
On May 24, Latam and Azul announced the termination of their codeshare agreement. Also at the end of May, Azul published a note in which it said it believed that "a movement of consolidation is a trend in the sector in the post-pandemic" and that "it is in a strong position to conduct a process in this direction", signaling that it is interested in buying Latam in Brazil.
The president of Latam in Brazil, Jerome Cadier, has been positioning himself against the purchase and denies any negotiation. However, Azul can articulate the purchase directly with the competitor's creditors.
Airbus A320neo
Azul
Rafael Luiz Canossa, CC BY-SA 2.0, via Wikimedia Commons
“In our opinion, within ninety days, Azul can make a proposal to acquire the domestic operations of Latam Airlines Brasil. Latam's creditors may request that this alternative be incorporated into the restructuring plan to be presented in the judicial reorganization proceedings by June 30 and to be voted on by August 23", analysts assess.
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Rafael Ramos
Aviation enthusiast from an early age, he had his first contacts with the area developing that good old habit of spending dozens of hours in front of the screens of Micrsoft Flight Simulator and other simulators. With a solid background in various technological areas, including engineering and chemistry, Rafael has rejoined aviation as editor and author of articles and materials on our portal, providing invaluable help to the dynamics and expansion of the website and the aeronautical community, bringing us the news and updates so indispensable for us to remain current in our area of operation.
   
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