(Updates with American Airlines response in the fifth and sixth paragraphs.)

American Airlines (AAL) received approval from Brazil's Administrative Council for Economic Defense, or CADE, to acquire an approximately 8% stake in Azul, CADE said Wednesday.

The transaction involves a $100 million investment as part of Azul's financial restructuring under Chapter 11.

CADE approved the transaction through a Concentration Control Agreement, or ACC, under which safeguards addressing identified competition risks will become directly enforceable obligations before the agency.

The ACC includes governance and information-sharing safeguards and regulates future changes in the companies' corporate structure, the agency added.

"We're pleased with CADE's approval of American's investment in Azul. American has served Latin America since 1942 and is proud to fly to 16 destinations in South America," an American Airlines spokesperson told MT Newswires in an emailed response.

The spokesperson added that the company will continue to provide customers "the best" options for traveling between the Americas and within South America.

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