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Colombia: Avianca set to buy Viva
On the night of April 28, several rumors began to gain momentum regarding a decision that will revolutionize the Latin American airline market in general, and the Colombian market in particular: Avianca reached an agreement to acquire Viva, a domestic competitor with international projection.
According to the testimony of sources consulted by Aviacionline, we can confirm that Viva accepted the offer, and that its president informed employees of the company’s next steps in a virtual conference.
Following the various administrative processes and the necessary governmental approval, an interim board of directors will be established to work on the areas of interest of the transaction.
According to these sources, the approvals and due diligence of the deal are expected to take approximately twelve months. After that period, the companies will maintain their brands and some operational independence.
According to sources, the transaction seeks to establish an alliance, rather than a full merger. Viva’s management stresses that Avianca’s interest is a validation of the work done and a recognition that a consolidation strategy will allow it to gain strength to gain a foothold in a market as competitive as the Colombian one.
It is speculated that at midnight Colombian time, official announcements from both Avianca and Viva confirming the agreement will be made.
From two key players to a mega player
In 2021, according to information compiled by Aviacionline through Aerocivil, Avianca captured 36.1% of the domestic market in Colombia, being the market leader. Viva ranked third, with 21.8%.
This article was written by Pablo Diaz for Aviacoionline.
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