News
HNA shopping spree continues
November 27th 2015
The Mainland’s fast-growing hospitality conglomerate, Haikou-headquartered HNA Group, has agreed to buy 23.7% of Azul Brazilian Airlines for $450 million, underscoring its undiminished appetite for global influence in the aviation and tourism industries. Read More » It recently invested in South Africa’s Comair and is finalising the complete takeover of Irish aircraft lessor, Avolon, for $7.6 billion, to name a few of its recent acquisitions.
Azul chief, David Neeleman, noted HNA was making a major investment in the Brazilian market at a time when Brazil’s economy was struggling. HNA views Azul as “a solid investment with high growth potential,” he said. “The investment of $450 million, considering Brazil’s current macroeconomic situation, demonstrates we have a winning business model and that the HNA Group, as a large investor, has absolute confidence in Azul’s team,” Neeleman said.
HNA president, Adam Tan Xiangdong, said the conglomerate was “committed to expanding in the airline industry through strategic investments in companies with strong market positions and excellent management teams,” adding the Hainan Airlines parent was “pleased to partner with Azul in order to bring more choice and convenience to our customers traveling to and from Brazil.”
HNA and Azul said their partnership would “result in commercial agreements, joint negotiation efforts, and adjustments in aircraft allocation” and “enable [Azul’s] entry into the Asian market”. HNA joins United Airlines as an investor in Azul after the U.S. carrier agreed to acquire 5% of Azul for $100 million earlier this year.
In the interim, the European Commission has given its final approval for HNA to acquire 100% of ground handling company, Swissport, for $2.7 billion Swiss francs ($2.64 billion). Swissport is the world’s largest ground and cargo handler, processing 224 million passengers and approximately 4.1 million tons of cargo a year and generating annual revenues in excess of 3 billion francs.
“The Commission concluded that the proposed acquisition would raise no competition concerns because the companies' activities do not overlap,” the regulator said in a statement. “The business presence of HNA Group, in particular, its extensive knowledge of the China market, will assist Swissport to more effectively expand emerging markets including China, which will enhance and optimize the global presence of both parties,” HNA’s Tan said July when the deal was first announced.
