Agreement reached to terminate Air Canada's proposed acquisition of Transat

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MONTREAL -- Air Canada is no longer acquiring Transat, the two airlines announced Friday in a statement.

The original agreement under which Air Canada was buying its competitor was reached in June 2019, but terms were amended in Aug. 2019 and again in Oct. 2020.

The acquisition was conditional on approval from various regulatory bodies and this is what caused the deal to fall through,"Following recent talks, it has become clear that the European Commission will not approve the acquisition under the current remedy package," Air Canada writes. The airline says it has concluded "after careful consideration" that offering "onerous additional remedies ... would significantly compromise its ability to compete internationally, and would negatively impact not only customers, but also other stakeholders and its future prospects, at a time when it is recovering and rebuilding in the aftermath of the COVID-19 pandemic.

 

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Tps

I fail to understand how AC can talk about purchasing another airlines, and our government considers it, for multi millions of dollars, only to turn around later and ask the feds for a bail out (with our tax dollars) because of economic losses.

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