Agreement Reached to End the Proposed Acquisition of Transat by Air Canada

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Agreement Reached to End the Proposed Acquisition of Transat by Air Canada


MONTREAL – Air Canada is no longer acquiring Transat, the two airlines announced in a press release on Friday.
The original agreement under which Air Canada bought its competitor was reached in June 2019, but the terms were changed in August 2019 and again in October 2020.

The acquisition was conditional on the approval of various regulators and that is what threw up the deal, according to Air Canada.

“As a result of recent discussions, it has become clear that the European Commission will not approve the acquisition under the current recourse program,” writes Air Canada.

The airline claims to have concluded “after careful consideration” that offering “costly additional remedies … would significantly compromise its ability to compete internationally and have a negative impact not only on its customers, but also on other stakeholders and its customers. prospects for the future, as it recovers and rebuilds itself from the COVID-19 pandemic. ”

The press release indicates that Air Canada will pay Transat $ 12.5 million to terminate the agreement.

Transat will also not have to pay any fees to Air Canada in the event that Transat takes part in a similar transaction in the future.

– this report by The Canadian Press was first published on April 2, 2021.

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