11:15 AM EDT, 04/18/2024 (MT Newswires) -- Azul ( AZUL ) is in talks with Abra Group, the controlling shareholder of rival Brazilian airline Gol, for a potential stock-based merger deal, Bloomberg News reported Thursday, quoting unnamed sources familiar with the matter.

A scenario being discussed is Abra contributing its Gol shares to Azul ( AZUL ) in return for a stake in the combined company, the report said, adding that type of deal may be appealing to Azul ( AZUL ) as it wouldn't require much cash, if any at all.

Under that scenario, Abra would keep ownership of its stake in Avianca, another Latin American airline, Bloomberg reported.

Azul ( AZUL ) shares were 4% lower in recent trading.

Azul ( AZUL ) and Gol didn't immediately respond to requests for comment by MT Newswires.

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