Air Canada and Air Transat agree to terminate acquisition agreement

    Air Canada and Air Transat agreed (02-Apr-2021) to terminate the arrangement agreement for the proposed acquisition of Transat by Air CanadaAir Canada agreed to pay Transat a termination fee of CAD12.5 million (USD9.9 million) and Transat is no longer under any obligation to pay Air Canada any fee should Transat be involved in another acquisition or similar transaction in the future. Air Canada noted that following recent discussions with the European Commission (EC), it “has become evident… that the EC will not approve the acquisition based on the currently offered remedy package”. The carrier also noted that after careful consideration, it concluded that “providing additional, onerous remedies, which may still not secure an EC approval, would significantly compromise Air Canada‘s ability to compete internationally, negatively impacting customers, other stakeholders and future prospects as it recovers and rebuilds from the impact of the COVID-19 pandemic”. [more – original PR]

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