By Stephen Nakrosis

Delta Air Lines Inc. (DAL) said Thursday it was entering a strategic partnership with Latam Airlines Group S.A. (LTM) and buying a 20% stake in the Chilean airline.

Delta also said it would invest $350 million "to support the establishment of the strategic partnership."

Delta said it expects the deal to be accretive to earnings per share over the next two years, and will finance its acquisition with newly issued debt and available cash.

As part of the deal, Delta will have a representative on Latam's board of directors.

The two companies will serve 435 destinations around the globe.

The deal improves Latam's free cash flow generation, and will reduce forecasted debt by over $2 billion by 2025.

Delta will hold a conference call on September 27 at 8:30 a.m. ET to discuss the deal, which will be followed by a Latam conference call at 10 a.m.

--Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

(END) Dow Jones Newswires

September 26, 2019 17:29 ET (21:29 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.
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