Brazil's Azul, Gol rise on report of airlines moving closer to merger

LATAM Airlines

09/01/2025 14:12

** Shares in Brazilian airlines Azul  AZUL4.SA  and Gol
 GOLL4.SA  rise after local media reported they were moving
closer to a potential merger
    ** Newspaper Valor Economico says Azul and Gol's parent Abra
Group are expected to sign a memorandum of understanding in the
coming weeks stressing the intention to merge
    ** Shares in Azul rise more than 6%, while Gol's shares jump
18%
    ** Azul and Abra have been in talks to "explore
opportunities" since mid-2024, following the announcement of a
codeshare deal between the two carriers
    ** Gol and Azul are two of Brazil's largest airlines,
dominating the market along with the local unit of Chile-based
LATAM Airlines  LTM.SN 
    ** Gol is under Chapter 11 bankruptcy protection in the U.S.
    ** "The deal looks complex, especially regarding regulatory
approvals, capital needs, and governance," analysts at BTG
Pactual say
    ** "However, sharp valuation declines post-COVID and recent
FX stress may have provided the driving force for it to move
onwards," they note

 (Reporting by Gabriel Araujo; Editing by Paul Simao)
 ((Gabriel.Araujo2@thomsonreuters.com; +55 11 5047-3352;))