Mach’s surprise bid for Air Transat, topping Air Canada
Canadian aviation has been a hotbed of activity during the past few weeks; the country's two largest airlines have announced major transactions they believe will better position themselves for the future.
Onex plans to purchase WestJet for CAD5 billion and take the airline private, and Air Canada is moving closer to wrapping up due diligence for its proposed CAD520 million acquisition of Transat.
But a Quebec real estate developer, Mach, has now entered the bidding for Transat with a higher price than Air Canada's initial offer. Mach's decision to pursue Transat occurs as speculation grows about whether regulators would approve Air Canada's purchase of Transat, given the concentration the two airlines would create in some international markets from Canada.
As the period of exclusivity for negotiations between Air Canada and Transat nears its end, Air Canada needs to decide if upping its offer for Transat is key for execution of its long term plan to maintain its competitive position in Canada's aviation market.
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