Another box was checked in the sale of Transat to Air Canada on Friday (Dec. 18) as Transat AT announced that the Superior Court of Quebec has issued a final order approving of the widely-publicized transaction.
Remember that this same arrangement was also approved by 90.05% of shareholders the during the meeting of Transat which took place on December 15.
Transaction still pending
Speaking to shareholders, the President and Chief Executive Officer of Transat, Jean-Marc Eustache, then said:
"We are satisfied with shareholder support for this revised arrangement...We are convinced more than ever that it is in the interests of all of our stakeholders to join forces with Air Canada."
The transaction remains subject to the applicable regulatory approvals such as the approvals under the Canada Transportation Act and the European Union Council Regulation (EC) No. 139/2004, as well as certain customary and other closing conditions.
The EC, which oversees competition policy in the 27-member European Union, is currently studying the deal to determine if it will hinder competition, increase prices and lead to fewer choices for consumers.
Air Canada lowered its price to buy Transat to reflect today's current economic conditions, which have changed due to the coronavirus crisis since the deal was first approved by Transat shareholders in August 2019.
The value of the agreement has also changed significantly as air travel continues to face unprecedented challenges due the downturn in demand.
The deal is now worth approximately CAD$190 million, down from CAD$720 million previously.
With files from Michael Pihach.
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