With 94.77% of shareholders voting in favour of the sale of Transat to Air Canada at a special meeting, the future of the deal now rests firmly in the hands of regulators. The bid of CA$720 million equates to a figure of CA$17.00 per share for Transat, while the company’s share price dropped 3 percent to CA$16.19 at market close. If successful, Air Canada’s takeover of Transat will see Canada’s largest carrier secure a 60% share of the country’s transatlantic market, while maintaining a firm hold on air travel to and from Montreal.
It is anticipated the takeover will be closely scrutinized, not only from the Competition Bureau, but other regulatory bodies, including those in Europe. “Today, we are very confident that we will get the approval of these different regulatory authorities,” Transat board member Jean-Yves Leblanc said at a news conference. (US$1.00 = CA$1.33 at time of publication.)