Air France-KLM to buy major stake in SAS
The French airline group said yesterday it intended to increase its stake from 19.9% currently by acquiring the stakes held by top shareholder Castlelake and Lind Invest.
The purchase, subject to regulatory clearances, is expected to close in the second half of 2026, Air France-KLM said.
The value of the investment would be determined at closing, based on SAS's latest financial performance, including core earnings and net debt, added the company.
The Scandinavian airline welcomed the announcement, calling it a 'defining moment' that marked Air France-KLM's commitment to strengthen SAS.
'It brings not just stability but will also allow for deeper industrial integration and the full backing of one of the world's leading airline groups,' SAS CEO Anko van der Werff said.
'Together, we will be better positioned to deliver greater value to our customers, our colleagues, and the wider region.'
SAS said it would continue to invest in its fleet and network.
In 2023, Air France-KLM said it would invest about US$144.5 million (RM610 million) for its initial SAS stake, boosting its presence in Sweden, Denmark and Norway with the option to become a controlling shareholder after a minimum of two years, subject to conditions.
SAS exited from Chapter 11 bankruptcy protection in August last year.
Air France-KLM CEO Ben Smith told Reuters in March that the company was looking to raise its stake in SAS, as the carrier was meeting the necessary milestones, including integration into the SkyTeam airline alliance, of which Air France-KLM is also a member.
The two carriers have already had a commercial cooperation since summer 2024. Control of SAS would allow Air France-KLM to expand in the Scandinavian market and create additional value for shareholders, Air France-KLM said in a statement.
'Following their successful restructuring, SAS has delivered impressive performance, and we are confident that the airline's potential will continue to grow through deeper integration within the Air France-KLM Group,' said Smith.
The deal comes as executives seek more consolidation in Europe's fragmented airline industry, which they say is needed to compete with US and Middle Eastern rivals.
Earlier this year, Germany's Lufthansa bought a 41% stake in Italy's ITA Airways and a stake in Air Baltic. The Portuguese government is looking to privatise its national carrier TAP
Lufthansa and Air France are also in talks about buying a stake in Spanish airline Air Europa. – Reuters
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
an hour ago
- The Star
Peru ramps up fight against illegal mining, kicks most informal miners off permit scheme
LIMA (Reuters) -Peru's government has excluded 50,500 informal miners from a temporary program that would allow them to continue operations, the minister of energy and mines said on Friday. Only 30,500 small-scale miners will remain in the program, called REINFO, to seek formalization and the government will reinforce its efforts against illegal miners, minister Jorge Montero told a local radio station. (Reporting by Marco Aquino; Editing by ALexander Villegas)
New Straits Times
an hour ago
- New Straits Times
Malaysia-France strengthen strategic cooperation in defence, economy & technology
PARIS: Three key documents have been signed between Malaysia and France as part of efforts to strengthen bilateral relations across the fields of defence, economy and technology. The exchange of documents was witnessed by Prime Minister Datuk Seri Anwar Ibrahim and French Prime Minister François Bayrou at an official ceremony held in Paris today. Among the agreements signed was a memorandum of understanding between Malaysian company Malaco and French firm Carester, marking a major milestone in the development of Malaysia's rare earth industry. It was in line with Malaysia's commitment to environmental, social and governance (ESG) principles and the country's national renewable energy agenda. Meanwhile, a letter of offer was presented to Thales LAS, aimed at enhancing Malaysia's airspace surveillance capabilities through the procurement of two new long-range radar units. Another significant initiative is the strategic partnership between Matrade and Business France, which will boost bilateral trade promotion, particularly in the aerospace, renewable energy and digital economy sectors.
The Star
2 hours ago
- The Star
Philippines says mild US tariff drove ‘strong' investor interest
MANILA: The global tariffs announced by US President Donald Trump in April triggered "strong' investor interest in the Philippines, which was threatened with a lower levy than most neighbours, a top trade official said. New investors are considering setting up shop in the SouthEast Asian nation, while companies seeking to divert orders are looking to tap existing Philippine businesses with excess capacity, Trade Undersecretary Ceferino Rodolfo (pic) said in an interview on Thursday (July 3). Trump's tariffs, which were paused for 90 days to July 9 to allow negotiations, included levies of 46% for Vietnam, 36% for Thailand, 32% for Indonesia and 24% for Malaysia. In contrast, the Philippines was only threatened with a relatively low levy of 17%, making it attractive compared to its South-East Asian neighbours. "In our discussions with investors, they are saying the investments in the Philippines will indeed happen. It's just a question of magnitude, depending on the result of July 9,' Rodolfo said. Electronics, garments, wearables and sporting goods companies have expressed interest in investing in the Philippines since Trump's tariff announcement, the trade official added. While Trump paused the higher tariffs, in general reducing them to 10% during the negotiation period, countries are racing to reach agreements as the tariff deadline looms. Trump on Wednesday announced a deal with Vietnam that lowers the 46% levy announced in April to 20%. Manila viewed the initial tariff imposed by the US as beneficial to President Ferdinand Marcos Jr's push to woo investments, with a lower rate compared to its Asian neighbours. But challenges including poor infrastructure, high energy costs and regulatory unpredictability have been constant concerns among foreign investors looking at the Philippines. The Philippines' approved foreign investments dropped in the first quarter, the most recent period for which data are available. The cloudy trade outlook has also prompted the government to slash its goal for economic growth this year. But Rodolfo said that even with the US-Vietnam deal, investor interest in the Philippines will likely be sustained. "The Philippines is a fair and decent country to trade with and invest in,' he said. "Among the countries in the region, we stand out as the country that really espouses market-based approach.' US trade with the Philippines totalled around US$23.5 billion in 2024, with Washington recording a deficit of $4.9 billion with Manila, according to US government data. That compares with a deficit of $45.6 billion with Thailand and $123.5 billion with Vietnam. - Bloomberg
