Transat drops with Air Canada takeover now in jeopardy

Air Canada’s proposed takeover of Transat has been thrown into doubt after European regulators failed to approve the deal by a Feb. 15 deadline. The companies are still talking about “potential amendments” that can keep the deal alive, Montreal-based Transat said. However, Air Canada won’t agree to extend the deadline, meaning either company now has the legal right to walk away from the deal, Transat said. If the deal falls apart, it may open the door to Quebecor CEO Pierre Karl Peladeau, who’d previously made an offer for Transat through his investment company. In a lengthy Facebook post Saturday, Peladeau predicted Air Canada and Transat would miss the deadline. Transat board members “will regain their freedom, allowing them to ensure the company’s sustainability, its outreach in the community and the considerable economic benefits for Quebeckers,” Peladeau wrote. “I invite them to find the reasonable terms of an agreement with my group so that we can save Transat, together.” Canadian regulators approved the deal last week with conditions, including a requirement that Air Canada keep 1,500 employees in its leisure travel business, start new routes within five years and keep the Transat head office in Quebec. But the EC hasn’t approved the deal yet and has requested additional information from the companies. Its decision is now expected in the first half of 2021.<br/>