- Air Canada (OTCQX:ACDVF) is scrapping its planned takeover of vacation operator Transat (OTC:TRZBF), after the European Union said it offered insufficient concessions to address competition concerns.
- "The proposed transaction would raise competition concerns on a large number of transatlantic routes," EU antitrust commissioner Margrethe Vestager says. "Based on the results of the market test, the remedies offered appeared insufficient."
- The airline says "providing additional, onerous remedies, which may still not secure an EC approval, would significantly compromise Air Canada's ability to compete internationally."
- Air Canada agreed to buy Transat in June 2019 and later raised its bid to $18/share before lowering it after the pandemic struck to $5/share in cash or 0.2862 Air Canada shares, valuing Transat at ~$200M.
- The Canadian government granted conditional approval of the deal in February.