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The parties having concluded that European Commission approval would not be obtained - The Arrangement Agreement between Transat and Air Canada is Terminated by Mutual Consent
The parties having concluded that European Commission approval would not be obtained - Th...
About this update from Transat A.t. Inc.
[{"type":"text","content":"\n \n \n \n The parties having concluded that European Commission approval would not be obtained - The Arrangement Agreement between Transat and Air Canada is Terminated by Mutual Consent\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n Transat actively pursuing negotiations to secure long-term financing as it plans for relaunch\n \n \n \n \n Transat to consider other available strategic alternatives\n \n \n \n MONTRÉAL,\n \n April 2, 2021\n \n /CNW Telbec/ - Transat A.T. Inc. (\"\n \n Transat\n \n \" or the \"\n \n Corporation\n \n \") today announced that the contemplated arrangement with Air Canada (the \"\n \n Arrangement\n \n \") under the revised arrangement agreement between Transat and Air Canada dated\n \n October 9, 2020\n \n (the \"\n \n Arrangement Agreement\n \n \") has been terminated by mutual agreement of Transat and Air Canada, effective immediately. The parties have reached this agreement after having been advised by the European Commission that it would not approve the transaction.\n \n \n In connection with the termination of the Arrangement Agreement, Air Canada has agreed to pay a\n \n $12.5 million\n \n termination payment to the Corporation and to waive its entitlement to a\n \n $10 million\n \n termination fee in the event of an acquisition of Transat by a third party in the twelve months following termination of the Arrangement Agreement.\n \n \n \"This transaction, first contemplated more than two years ago, was complicated by the pandemic, and, ultimately, Air Canada reached its limit in terms of concessions it was willing to provide the European Commission to satisfy their competition law concerns,\" said\n \n Jean-Marc Eustache\n \n , President and Chief Executive Officer of Transat. \"While both companies expected the proposed transaction to result in compelling benefits to shareholders, customers and other stakeholders, and even though we had received approval from the Canadian authorities, it has now become evident that we would not obtain the approval ...