Brazil’s competition regulator Cade approved a $100 million American Airlines investment in Azul. The deal gives the U.S. carrier a roughly 8% stake but is conditional on signing and fully complying with a merger-control agreement.
Cade announced the decision on October 7 as part of Azul’s financial restructuring under the U.S. Chapter 11 process. The airlines provided information to the regulator and helped develop safeguards for approval.
The regulator said minority stakes between competing airlines can affect economic incentives, governance rights and access to commercially sensitive information. Cade also assessed the risk of coordination in air travel markets, including routes between Brazil and the United States.
The deal was conditionally approved under an agreement that makes the safeguards binding and enforceable by Cade. Reuters reported the approval followed objections by Abra Group, which controls Brazil’s Gol, and other interested parties.