Plot Twist: Air Canada could be buying Air Transat
Boy oh boy, first WestJet announces that it might go private, and now Air Canada steps up to the plate. A recent statement from both Air Canada and Air Transat says that both companies are exploring the possibility of Air Canada taking over.
Air Transat, a Montreal-based company, is part of Transat A.T. Inc., which also has a travel agency and a slew of vacation properties. Air Canada would just buy Transat A.T. for $520 million, which represents a roughly 20% markup on what they’ve been trading at on the open market.
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Air Transat deals mostly in overseas travel, flying to Europe and South America/Mexico primarily. This might trip up Canada’s regulatory bodies. That’s because a merger between Air Canada and Air Transat could restrict competition. Ah, monopolies, you got to love them.
But, all of this is still in the early stages, and we’re sure that more details will come to light in the coming weeks. For now, you should just be thinking about where you want to fly for a summer getaway.
You can read the full press release here.