WestJet gains first regulatory approval in its proposed acquisition by Onex

posted on 25th June 2019 by Justin Burns

WestJet Airlines has received approval from the Minister of Transport (Canada) on the basis that the proposed acquisition by Onex Corporation “does not raise public interest issues as related to national transportation”.

WestJet and Onex entered into a definitive agreement on 12 May, 2019, for the proposed acquisition of WestJet by Onex under a plan of arrangement pursuant to which each outstanding share of WestJet will be exchanged for C$31.00 in cash.

Receipt of the Minister of Transport’s approval is one of the conditions to closing of the arrangement.

WestJet president and CEO, Ed Sims said, “We welcome the decision by the Minister of Transport, and we will continue to cooperate with the necessary authorities on the remaining regulatory approvals.”

The arrangement is still subject to other conditions to closing including other regulatory approvals, approval by the securityholders of WestJet at a special meeting to be held on 23 July, 2019 and final approval of the Arrangement by the Court of Queen’s Bench of Alberta.

Assuming the approval of the arrangement by WestJet’s securityholders and the timely receipt of regulatory approvals, the transaction is expected to close in the latter part of 2019.