MONTREAL — Air Canada has informed Transat AT Inc. that it will not allow more time for its scheduled acquisition of the company to go through, Transat says.
The date set to complete the acquisition was Feb. 15, but since the deal has not yet received approval from the European Union, both parties now have the right to terminate the agreement at any time.
The new arrangement raises questions about the future of the acquisition, which was approved by the Canadian government on Feb. 11.
Transat says it is in discussions with Air Canada about potential amendments to the deal.
However, Transat says there is no guarantee that any deal will be reached.
Air Canada’s decision not to extend the transaction date comes as the airline industry suffers from a lack of travel demand caused by government pandemic restrictions.
This report by The Canadian Press was first published Feb. 16, 2021.
Companies in this story: (TSX:AC; TSX: TRZ)
The Canadian Press