Authorities approve GOL’s purchase of Brazil’s fifth-largest airline MAP

RIO DE JANEIRO, BRAZIL – The Administrative Council for Economic Defense (CADE) has approved without restrictions the acquisition of Brazil’s fifth largest airline MAP Linhas Aéreas by GOL.

Founded in 2011, MAP airline owns a fleet of seven 70-seat ATR aircraft operating in the Amazon region routes out of Manaus Airport.

GOL announced the decision in a material fact released on Monday, January 3, and should become final on January 14.

Announced in June 2021, the acquisition was agreed to be worth $28 million in cash and stock plus GOL’s commitment to assume MAP’s debt of 100 million reais.

With the deal, GOL intends to offer new destinations and routes at Congonhas Airport (São Paulo), expand the number of seats per flight, and have greater spending efficiency.

Despite the expansion plans and the recovery in operating figures presented in the last year, GOL shares closed in 2021 with a 29% drop.

Among the triggers for the negative movement are concerns about the effects of the new variants of the coronavirus, which has already caused thousands of flight cancellations in the Northern hemisphere.

DEAL WAS ANNOUNCED IN JUNE 2021

Back in June 2021, GOL had bought MAP Linhas Aéreas, in a R$28 (US$5.5) million deal.

According to the disclosure, the payment was to be made in 100,000 shares at R$28 per unit and R$25 million in cash to be paid in 24 monthly installments.

According to the company, the purchase will bolster GOL’s leadership position in two of its main bases, with growth in Congonhas of approximately 10%, through the addition of 26 daily flights.