Delta Air Lines is set to acquire an increased stake in Grupo Aeromexico as the two airlines deepen their partnership on routes between the US and Mexico.
Delta currently owns 4.1% and plans to acquire another 32% through a cash tender offer.
Along with separate entity Delta Pension Trust, it would have an option to acquire up to 49% of the outstanding shares of Grupo Aeromexico.
Delta said it will move forward with the transaction once it obtains regulatory approvals in Mexico and the United States.
"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," Delta president Ed Bastian said in a statement.
Delta has held a shareholding in Aeromexico since 2012 when it invested an initial $65 million.
The two airlines began codesharing in 1994 an in March this year asked for antitrust immunity to establish a joint venture on US-Mexico routes
