Gol Falls as Regulator Approves $47 Million Webjet Acquisition
Gol Linhas Aereas Inteligentes SA (GOLL4), Brazil’s second-biggest airline by market share, fell to a four- week low as the country’s antitrust regulator approved its acquisition of Webjet Linhas Aereas SA.
Shares sank 2.8 percent to 10.93 reais at the close of trading in Sao Paulo, the lowest since Sept. 12. The benchmark Bovespa index slid 0.8 percent. Before the decision was announced, the stock lost as much as 4.4 percent.
Officials at the regulator, known as Cade, authorized the acquisition with one restriction: Gol will have to achieve an efficiency rate of at least 85 percent at its slots in Rio de Janeiro’s Santos Dumont airport. The 96 million reais ($47 million) merger was agreed to in July 2011.
“The big question now is how the air carrier will conduct the merger in a very challenging scenario of rising fuel prices and demand that’s not rising,” Leonardo Nitta, an analyst at Banco do Brasil, said by phone from Sao Paulo.
Gol’s shares have lost 12 percent this year. Webjet isn’t publicly traded.
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