Air Canada said yesterday (5 June) it is in the process of finalising its binding agreement to purchase all of the issued and outstanding shares of Transat AT (Air Transat) for C$520 million.
The national carrier of Canada announced on 16 May, 2019 that it had entered into an exclusive agreement with Transat regarding the proposed transaction and that the agreement was subject to Air Canada completing a 30-day due diligence period now expected to be complete towards the end of June.
Air Canada’s acquisition will result in job creation and economic growth in Quebec, given the travel and tourism opportunities. The airline said it has all necessary funding to complete the transaction and therefore it is not subject to financing conditions and does not require government or taxpayer assistance.
The transaction, valued at C$520 million, remains subject to the finalisation of definitive agreements, confirmatory due diligence, regulatory and shareholder approvals and other closing conditions usual in this type of transaction. Air Canada said there is no assurance the transaction will be completed as described in this news release or at all.
Air Canada serves 11 airports across Quebec. Montréal-Trudeau Airport is a strategic hub for the airline connecting its Quebec and Atlantic Canada domestic network, with its US transborder, Caribbean, European, North African, Asian and South American flights. Air Canada served more than 10 million passengers in Montreal in 2018.