American Airlines is reported to be weighing up taking a stake in China Southern Airlines.
Asia’s biggest carrier confirmed that negotiations are taking place over “a possible major strategic co-operation with American Airlines, involving, among others, proposed issue of shares of the company and other business co-operation”.
The US carrier is expected to invest around $200 million China Southern’s Hong Kong-listed shares through a private placement, Bloomberg reported.
If concluded, the deal would strengthen American’s presence in the Chinese market after rival Delta Air Lines acquired minority stake in China Eastern Airlines in 2015.
Guangzhou-based China Southern would be the last of the nation’s top three airlines to bring in a non-mainland Chinese strategic investor.
Cathay Pacific Airways owns about 18% of flag carrier Air China.