American Airlines wins conditional approval for $100 million Azul investment

Fort Worth-based American Airlines has cleared a regulatory hurdle in its proposed $100 million investment in Brazilian carrier Azul, though conditions remain before the deal can move forward.

Brazil’s competition authority, CADE, approved the transaction Oct. 7. American would receive approximately 8% of Azul.

The approval requires the companies to sign and comply with a merger-control agreement. Its safeguards cover independent governance and the handling of competitively sensitive information. CADE will also monitor future American investments in airlines serving Brazil–U.S. routes and changes in American’s governance rights at Azul.

In an Oct. 7 securities filing, Azul said the investment would come through American’s exercise of warrants. The company expected the decision and agreement to be published in the following days, followed by implementation of related commercial agreements.

Azul’s filing describes the next steps in the transaction; it does not announce that American has completed the investment.

American’s headquarters is the Robert L. Crandall Campus in Fort Worth.