Air Canada has announced it is in exclusive talks to buy its competitor Air Transat.

Good news, says Transat CEO

Air Canada said that the transaction value the company at 520 million Canadian dollars or $13 per share which represents a 22% premium to current value, and that it had enough money to buy its competitor.

This announcement is good news for Transat, said Transat CEO Jean-Marc Eustache. 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. 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.

Shares of Transat AT inc, the parent of Air Transat, jumped 16% following the announcement.

Founded in 1937, Air Canada is Canada’s largest airline. It serves over 222 destinations in 47 countries and counts around 36,000 employees, 10,000 of which are in Quebec. Founded in 1986, Transat serves 60 destinations in 25 countries and has about 5,000 employees, mostly in Quebec.

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