Delta to take 3.55% stake in China Eastern

Delta Air Lines Inc said on Monday it is acquiring a 3.55 percent stake in China Eastern Airlines Co Ltd for $450 million, as part of the efforts by the two carriers to further consolidate their relationship.

This is the first time that the US carrier is becoming a shareholder in one of the big three carriers in China, although the deal still needs to be approved by the boards of the two companies and the Chinese authorities.

Delta agreed to subscribe for nearly 466 million shares of China Eastern at the price of HK$7.49 ($0.97) per share, according to the statement from China Eastern. "The carrier intends to utilize the net proceeds for working capital and other general corporate purposes," said the statement.