{"id":470366,"date":"2021-04-02T12:03:40","date_gmt":"2021-04-02T16:03:40","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=470366"},"modified":"2021-04-02T12:03:40","modified_gmt":"2021-04-02T16:03:40","slug":"air-canada-and-transat-a-t-inc-agree-to-terminate-arrangement-agreement","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/air-canada-and-transat-a-t-inc-agree-to-terminate-arrangement-agreement\/","title":{"rendered":"Air Canada and Transat A.T. Inc. Agree to Terminate Arrangement Agreement"},"content":{"rendered":"<div class=\"xn-newslines\">\n<p class=\"xn-distributor\">Canada NewsWire<\/p>\n<\/p><\/div>\n<div class=\"xn-content\">\n<p>\n        <span class=\"xn-location\">MONTREAL<\/span>, <span class=\"xn-chron\">April 2, 2021<\/span> \/CNW Telbec\/ &#8211;\u00a0Air Canada and Transat A.T. Inc. (&#8220;Transat&#8221;) announced today that they have mutually agreed to terminate the Arrangement Agreement for the proposed acquisition of Transat by Air Canada. <\/p>\n<p>Air <span class=\"xn-location\">Canada<\/span> and Transat had originally agreed in <span class=\"xn-chron\">June 2019<\/span> on the acquisition, the terms of which were subsequently amended in <span class=\"xn-chron\">August 2019<\/span> and then revised in <span class=\"xn-chron\">October 2020<\/span> as a result of the severe economic impact of the COVID-19 pandemic.<\/p>\n<p>As previously disclosed, the acquisition was conditional on the approval of various regulatory authorities, including the European Commission (&#8220;EC&#8221;). In order to meet that key condition, Air Canada offered and enhanced a significant package of remedies, which went beyond the commercially reasonable efforts required of Air Canada under the Arrangement Agreement\u00a0and what has been traditionally accepted by the EC in previous airline merger cases. Following recent discussions with the EC, it has become evident, however, that the EC will not approve the acquisition based on the currently offered remedy package.<\/p>\n<p>After careful consideration, Air Canada has concluded that providing additional, onerous remedies, which may still not secure an EC approval, would significantly compromise Air Canada&#8217;s ability to compete internationally, negatively impacting customers, other stakeholders and future prospects as it recovers and rebuilds from the impact of the COVID-19 pandemic. Especially in this challenging environment, it is essential that Air Canada focus on creating the optimal conditions for its full recovery by preserving and leveraging all of its key strengths and assets including its strong employee culture. <\/p>\n<p>Both Air Canada and Transat have agreed to terminate\u00a0the Arrangement Agreement with\u00a0Air Canada paying Transat a termination\u00a0fee of <span class=\"xn-money\">$12.5 million<\/span>, and with Transat no longer under\u00a0any obligation to pay Air Canada any\u00a0fee should Transat be involved\u00a0in another acquisition or similar transaction in\u00a0the future.<\/p>\n<p>\n        <b><br \/>\n          <i><br \/>\n            <u>CAUTION REGARDING FORWARD-LOOKING INFORMATION\u00a0 <\/u><br \/>\n          <\/i><br \/>\n        <\/b>\n      <\/p>\n<p>\n        <i>This news release includes forward-looking statements within the meaning of applicable securities laws. Forward-looking statements relate to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable. These statements may involve, but are not limited to, comments relating to guidance, strategies, expectations, planned operations or future actions. Forward-looking statements are identified using terms and phrases such as &#8220;preliminary&#8221;, &#8220;anticipate&#8221;, &#8220;believe&#8221;, &#8220;could&#8221;, &#8220;estimate&#8221;, &#8220;expect&#8221;, &#8220;intend&#8221;, &#8220;may&#8221;, &#8220;plan&#8221;, &#8220;predict&#8221;, &#8220;project&#8221;, &#8220;will&#8221;, &#8220;would&#8221;, and similar terms and phrases, including references to assumptions. Forward-looking statements, by their nature, are based on assumptions, including those described herein and are subject to important risks and uncertainties. Forward-looking statements cannot be relied upon due to, amongst other things, changing external events and general uncertainties of the business. Actual results may differ materially from results indicated in forward-looking statements due to a number of factors, including the factors identified herein and in Air Canada&#8217;s public disclosure file available at <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3117796-1&amp;h=2850313532&amp;u=https%3A%2F%2Fwww.sedar.com%2F&amp;a=www.sedar.com\" rel=\"nofollow noopener noreferrer\">www.sedar.com<\/a> including those factors identified in section 17 &#8220;Risk Factors&#8221; of Air Canada&#8217;s 2020 MD&amp;A. The forward-looking statements contained or incorporated by reference in this news release represent Air Canada&#8217;s expectations as of the date of this news release (or as of the date they are otherwise stated to be made) and are subject to change after such date. However, Air Canada disclaims any intention or obligation to update or revise any forward-looking statements whether because of new information, future events or otherwise, except as required under applicable securities regulations.<\/i>\n      <\/p>\n<p>\n        <b>About Air Canada <\/b>\n      <\/p>\n<p>Air <span class=\"xn-location\">Canada<\/span> is <span class=\"xn-location\">Canada&#8217;s<\/span> largest domestic and international airline and, in 2020, was among the top 20 largest airlines in the world. It is <span class=\"xn-location\">Canada&#8217;s<\/span> flag carrier and a founding member of <span class=\"xn-person\">Star Alliance<\/span>, the world&#8217;s most comprehensive air transportation network. Air <span class=\"xn-location\">Canada<\/span> is the only international network carrier in <span class=\"xn-location\">North America<\/span> to receive a Four-Star ranking according to independent U.K. research firm Skytrax. In 2020, Air Canada was named Global Traveler&#8217;s Best Airline in <span class=\"xn-location\">North America<\/span> for the second straight year. In <span class=\"xn-chron\">January 2021<\/span>, Air Canada received APEX&#8217;s Diamond Status Certification for the Air Canada CleanCare+ biosafety program for managing COVID-19, the only airline in <span class=\"xn-location\">Canada<\/span> to attain the highest APEX ranking. Air <span class=\"xn-location\">Canada<\/span> has also committed to a net zero emissions goal from all global operations by 2050. For more information, please visit: <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3117796-1&amp;h=2963502076&amp;u=https%3A%2F%2Fwww.aircanada.com%2Fmedia&amp;a=aircanada.com%2Fmedia\" rel=\"nofollow noopener noreferrer\">aircanada.com\/media<\/a>, follow Air Canada on\u00a0<a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3117796-1&amp;h=421285126&amp;u=https%3A%2F%2Ftwitter.com%2Faircanada&amp;a=Twitter\" rel=\"nofollow noopener noreferrer\">Twitter<\/a>\u00a0and <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3117796-1&amp;h=1454408166&amp;u=https%3A%2F%2Fwww.linkedin.com%2Fcompany%2Fair-canada%2F&amp;a=LinkedIn\" rel=\"nofollow noopener noreferrer\">LinkedIn<\/a>, and join Air Canada on <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3117796-1&amp;h=2488758351&amp;u=http%3A%2F%2Fwww.facebook.com%2Faircanada&amp;a=Facebook\" rel=\"nofollow noopener noreferrer\">Facebook<\/a>.<\/p>\n<p>\n        <b>Internet:<\/b>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3117796-1&amp;h=2987046633&amp;u=https%3A%2F%2Fwww.aircanada.com%2Fca%2Fen%2Faco%2Fhome%2Fabout%2Fmedia.html&amp;a=aircanada.com%2Fmedia\" rel=\"nofollow noopener noreferrer\">aircanada.com\/media<\/a><\/p>\n<p>\n        <b>Sign up for Air Canada news: <\/b><br \/>\n        <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3117796-1&amp;h=2358624793&amp;u=https%3A%2F%2Fwww.aircanada.com%2Fca%2Fen%2Faco%2Fhome%2Fabout%2Fmedia%2Fmedia-subscribe.html&amp;a=aircanada.com\" rel=\"nofollow noopener noreferrer\">aircanada.com<\/a>\n      <\/p>\n<p>\n        <b>Media Resources: <\/b>\n      <\/p>\n<p>\n        <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3117796-1&amp;h=3752387287&amp;u=https%3A%2F%2Fwww.aircanada.com%2Fca%2Fen%2Faco%2Fhome%2Fabout%2Fmedia%2Fphotos-logos.html&amp;a=Photos\" rel=\"nofollow noopener noreferrer\">Photos<\/a><br \/>\n        <br \/>\n        <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3117796-1&amp;h=328947301&amp;u=https%3A%2F%2Fvimeo.com%2Faircanadamedia&amp;a=Videos\" rel=\"nofollow noopener noreferrer\">Videos<\/a><br \/>\n        <br \/>\n        <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3117796-1&amp;h=2118476835&amp;u=https%3A%2F%2Fvimeo.com%2Fshowcase%2F7295059&amp;a=B-Roll\" rel=\"nofollow noopener noreferrer\">B-Roll<\/a><br \/>\n        <br \/>\n        <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3117796-1&amp;h=3036473500&amp;u=https%3A%2F%2Fwww.aircanada.com%2Fca%2Fen%2Faco%2Fhome%2Fabout%2Fmedia%2Fmedia-features.html%23%2Ftab_1597_title_0&amp;a=Articles\" rel=\"nofollow noopener noreferrer\">Articles<\/a>\n      <\/p>\n<p>SOURCE  Air Canada<\/p>\n<\/p><\/div>\n<p>    <img decoding=\"async\" alt=\"\" src=\"https:\/\/rt.prnewswire.com\/rt.gif?NewsItemId=C4157&amp;Transmission_Id=202104021200CANADANWWEB______C4157&amp;DateId=20210402\" style=\"border:0px;width:1px;height:1px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Canada NewsWire MONTREAL, April 2, 2021 \/CNW Telbec\/ &#8211;\u00a0Air Canada and Transat A.T. Inc. (&#8220;Transat&#8221;) announced today that they have mutually agreed to terminate the Arrangement Agreement for the proposed acquisition of Transat by Air Canada. Air Canada and Transat had originally agreed in June 2019 on the acquisition, the terms of which were subsequently amended in August 2019 and then revised in October 2020 as a result of the severe economic impact of the COVID-19 pandemic. As previously disclosed, the acquisition was conditional on the approval of various regulatory authorities, including the European Commission (&#8220;EC&#8221;). In order to meet that key condition, Air Canada offered and enhanced a significant package of remedies, which went beyond the commercially reasonable efforts &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.marketnewsdesk.com\/index.php\/air-canada-and-transat-a-t-inc-agree-to-terminate-arrangement-agreement\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Air Canada and Transat A.T. Inc. Agree to Terminate Arrangement Agreement&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-470366","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Air Canada and Transat A.T. Inc. Agree to Terminate Arrangement Agreement - Market Newsdesk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.marketnewsdesk.com\/index.php\/air-canada-and-transat-a-t-inc-agree-to-terminate-arrangement-agreement\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Air Canada and Transat A.T. Inc. Agree to Terminate Arrangement Agreement - Market Newsdesk\" \/>\n<meta property=\"og:description\" content=\"Canada NewsWire MONTREAL, April 2, 2021 \/CNW Telbec\/ &#8211;\u00a0Air Canada and Transat A.T. Inc. (&#8220;Transat&#8221;) announced today that they have mutually agreed to terminate the Arrangement Agreement for the proposed acquisition of Transat by Air Canada. Air Canada and Transat had originally agreed in June 2019 on the acquisition, the terms of which were subsequently amended in August 2019 and then revised in October 2020 as a result of the severe economic impact of the COVID-19 pandemic. As previously disclosed, the acquisition was conditional on the approval of various regulatory authorities, including the European Commission (&#8220;EC&#8221;). In order to meet that key condition, Air Canada offered and enhanced a significant package of remedies, which went beyond the commercially reasonable efforts &hellip; Continue reading &quot;Air Canada and Transat A.T. Inc. 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Inc. Agree to Terminate Arrangement Agreement - Market Newsdesk","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.marketnewsdesk.com\/index.php\/air-canada-and-transat-a-t-inc-agree-to-terminate-arrangement-agreement\/","og_locale":"en_US","og_type":"article","og_title":"Air Canada and Transat A.T. Inc. Agree to Terminate Arrangement Agreement - Market Newsdesk","og_description":"Canada NewsWire MONTREAL, April 2, 2021 \/CNW Telbec\/ &#8211;\u00a0Air Canada and Transat A.T. Inc. (&#8220;Transat&#8221;) announced today that they have mutually agreed to terminate the Arrangement Agreement for the proposed acquisition of Transat by Air Canada. Air Canada and Transat had originally agreed in June 2019 on the acquisition, the terms of which were subsequently amended in August 2019 and then revised in October 2020 as a result of the severe economic impact of the COVID-19 pandemic. As previously disclosed, the acquisition was conditional on the approval of various regulatory authorities, including the European Commission (&#8220;EC&#8221;). In order to meet that key condition, Air Canada offered and enhanced a significant package of remedies, which went beyond the commercially reasonable efforts &hellip; Continue reading \"Air Canada and Transat A.T. Inc. Agree to Terminate Arrangement Agreement\"","og_url":"https:\/\/www.marketnewsdesk.com\/index.php\/air-canada-and-transat-a-t-inc-agree-to-terminate-arrangement-agreement\/","og_site_name":"Market Newsdesk","article_published_time":"2021-04-02T16:03:40+00:00","og_image":[{"url":"https:\/\/rt.prnewswire.com\/rt.gif?NewsItemId=C4157&amp;Transmission_Id=202104021200CANADANWWEB______C4157&amp;DateId=20210402","type":"","width":"","height":""}],"author":"Newsdesk","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Newsdesk","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.marketnewsdesk.com\/index.php\/air-canada-and-transat-a-t-inc-agree-to-terminate-arrangement-agreement\/#article","isPartOf":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/air-canada-and-transat-a-t-inc-agree-to-terminate-arrangement-agreement\/"},"author":{"name":"Newsdesk","@id":"https:\/\/www.marketnewsdesk.com\/#\/schema\/person\/482f27a394d4fda80ecb5499e519d979"},"headline":"Air Canada and Transat A.T. 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