China Southern Airlines (CZ, Guangzhou) has confirmed it is in talks with American Airlines (AA, Dallas/Fort Worth) over what it termed "a possible major strategic cooperation."
In a filing to the Shanghai Stock Exchange on Sunday, March 26, the carrier said the negotiations centred on, among other issues, the proposed issuance of China Southern shares and other business co-operation.
"As of the date of this announcement, the Company [China Southern] does not have any binding arrangement or definitive agreement in relation to the Possible Cooperation," it said.
In the event a deal is struck, China Southern said it would still be subject to internal as well as government approvals before a binding, final agreement can be signed.
As such, trading in China Southern shares is to resume at 09h00L on Monday, March 27, 2017.
