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April 2 (Reuters) – Air Canada AC.TO and Transat AT Inc TRZ.TO stated on Friday they’ve mutually agreed to terminate the proposed acquisition of Transat by Air Canada, after being suggested by European Fee that it will not approve the deal.
Air Canada stated that following the latest discussions with the European Fee (EC), it has develop into evident, nevertheless, that the EC won’t approve the acquisition primarily based on the provided treatment bundle.
Air Canada in February refused to increase the deadline for its C$188.7 million ($150.19 million) deal for Transat, after European regulators failed to provide the go-ahead for the buyout.
The 2 corporations had agreed in June 2019 on the acquisition, the phrases of which have been subsequently amended in August 2019 after which revised in October 2020 because of the extreme financial influence of the COVID-19 pandemic.
Air Canada has agreed to pay a C$12.5 million termination fee to Transat.
($1 = 1.2564 Canadian {dollars})
(Reporting by Arunima Kumar in Bengaluru Modifying by Matthew Lewis and Marguerita Choy)
((Arunima.Kumar@thomsonreuters.com;))
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