Transat seeks to allay antitrust issues in Air Canada reviews

Transat told shareholders it’s seeking to allay antitrust issues pinpointed by the EU over its takeover by Air Canada and hopes to win approval by February. The company said in a letter dated Nov. 12 that it’s working with Air Canada “to address the concerns raised” by the EC in a so-called statement of objections sent late September. Transat said efforts to win over regulators in the EU, as well as Canada, could include “the offer of remedies, which should provide a greater chance of obtaining the required approvals” by February. The EU’s antitrust arm previously warned that the deal could hamper competition by combining the two biggest airlines linking Europe and Canada. The statement of objections, not previously reported by the EU or the companies, is a typical move in complex deal reviews. Such filings raise the risks of a veto if antitrust concerns aren’t solved, often with an offer to divest operations. Transat said Tuesday that its expectations remain the same as in last week’s letter. It declined to comment on possible concessions “which are the purchaser’s responsibility.” Air Canada and the EC declined to comment. Air Canada agreed to buy Transat in August 2019 before the coronavirus pandemic shut down most air travel. <br/>