Air Canada and Transat terminate their deal

Air Canada’s planned $190-million purchase of Transat AT has been terminated by mutual agreement of both companies, effective immediately. The end of the deal first announced in 2019 comes after the airlines were advised by the European Commission that it would not
approve the transaction. The European review was the final hurdle in the regulatory
process. Air Canada has agreed to pay a $12.5 million termination payment to Transat AT and to waive its entitlement to a $10 million termination fee in the event of an acquisition of Transat by a third party. The President of Transat said, “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.