The Air France – KLM group announced that it takes another big European company / its reaction: “We are very happy”

Air France-Klm intends to increase its participation in the Scandinavian SAS at 60.5%, the last step towards the fragmented strengthening of the air sector in Europe, in the context in which the big companies in the field try to strengthen their position against competition, reports Reuters.

The Franco-Landez air group announced on Friday that it intends to increase its participation from 19.9% ​​at present, by acquiring the participations held by the main shareholders Castlelake and Lind Invest.

The purchase of SAS, a company in the top ten in Europe in terms of the number of passengers transported, is expected to be completed in the second half of 2026, according to Air France-Klm.

Synergies of hundreds of millions of euros

The value of the investment will be determined at the end of the transaction, based on the latest financial results of the SAS, including the basic income (EBITDA) and the net debt, said the company, without details on these indicators.

Air France-Klm expects to generate synergies of “hundreds of millions” of euros from increasing his participation in SAS, told analysts Steven Zaat, the financial director of Air France-Klm.

Zaat said that the transaction will be financed from cash or from a “simple bond” and will not have an impact on the efforts to reduce the group's hybrid debt. “We have enough space for this,” he said.

JPMorgan analysts have appreciated that there are reasons to be optimistic about the transaction.

“SAS offers a deeper access to a region with high GDP in Scandinavia, and now there will be the opportunity to unlock cost synergies, once SAS will become a subsidiary of the group,” they said in a note to investors, adding that “the consolidation of the industry should be viewed positively for the whole sector”, even if the rules “.

SAS position: “We are very happy”

SAS greeted the announcement of Air France-Klm. “European consolidation had to continue and we are very happy to participate in it,” said Anko Van der Werff, SAS executive director, for the Danish TV2 television station.

“In the current configuration, in which Air France-Klm owns 19.9% ​​of the shares, it remains a competitor,” he said.

“With the new participation, which exceeds 50%, we can truly use all these synergies and offer these benefits to customers,” added Van der Werff.

Sas said he would continue to invest in his fleet and network.

In 2023, Air France-Klm said he would invest about $ 144.5 million for initial participation in SAS, strengthening his presence in Sweden, Denmark and Norway, with the option of becoming a majority shareholder after at least two years, depending on certain conditions.

SAS came out of the protection procedure against bankruptcy in August last year.

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