Qantas could be next in line for Chinese investment
Qantas could be next in line for investment from cash-rich Chinese companies, says Credit Suisse Group.
Recent Chinese-led investment in Virgin Australia could spur more acquisition activity in Qantas to gain a foothold on routes linking Australia and China, Credit Suisse analysts said.
There is about 5% of Qantas available to a foreign investor before it reaches the 49% cap on foreign ownership under Australian law.
Credit Suisse analyst Paul Butler cited China Eastern Airlines and China Southern Airlines as the most likely suitors.
The Qantas share price is a ‘compelling strategic and value opportunity,’ for a Chinese carrier, Butler wrote.
Qantas has a strategic alliance with China Eastern on routes to China from Australia and has a codeshare agreement with China Southern.
In the last two weeks both HNA Group and Nanshan Group have invested heavily in rival Virgin Australia and now about a third of Virgin’s stock is Chinese owned.
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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