Transat AT Inc. is reportedly in exclusive talks with Canada’s largest air carrier, Air Canada, which is presently in discussion to purchase the travel airline.
Air Canada is offering $13 per share, and the two companies are in a 30-day exclusive negotiation period.
The offer is reportedly in the ballpark of $520 million, and if agreed and approve, is said to be good for both companies.
“This is an opportunity to team up with a great company that knows and understands our industry and has had undisputable success in the travel business,” Eustache said in a statement to media Thursday.
“This represents the best prospect for not only maintaining, but growing over the long term the business and jobs that Transat has been developing in Quebec and elsewhere for more than 30 years.”
Transat owns multiple lines of businesses, including Air Transat, but sells vacation packages, similar to Air Canada Rouge. It is unsure how Air Canada would combine the companies, if at all, or if will operate them separately under the acquisition.
“The acquisition presents a unique opportunity to compete with the very best in the world when it comes to leisure travel,” Air Canada CEO Calin Rovinescu said in a statement Thursday.
Transat has been reportedly in talks to sell the company since last month, and this news comes off the heels of the news that Onex Corp.’s intention to purchase WestJet this week.