The Wall Street Journal: American Airlines, China Southern Airlines in tie-up talks

American Airlines Group Inc. wants to deepen its presence in the Chinese airline market.

American AAL, +0.02% and China Southern Airlines Co. 600029, +0.76% are discussing a “major strategic cooperation,” the Chinese airline said Monday in a regulatory filing.

China Southern said the companies are discussing an equity purchase by American and other forms of cooperation. China Southern, based in Guangzhou, said any deal could be subject to approvals by the boards and shareholders of both companies and by government authorities.

American, based in Fort Worth, Texas, declined to comment Monday. Bloomberg last week reported that American might invest $200 million in the Chinese firm through a private placement and receive a nonvoting observer seat on its board.

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