The corporate world is soaring regarding recent rumblings that one of Canada's major airlines is poised to add another under its wing. Recent business and commercial news in Canada has it that Air Canada has made a bid to purchase Transat to the tune of $520 million despite Transat's more than $24 million in losses it suffered last year. Many analysts believe that it's a deal that would benefit both companies.
The merger would increase Air Canada's fleet while reducing competition in leisure travel flight. When Transat began showing signs of problems, a number of corporations began courting the company, among them Quebecor, FNC Capital, and Onex, which recently purchased West Jet for $5 billion. But experts believe the best deal for employees and future growth would come from the merger of Air Canada and Transat. In fact, the stocks in both companies soared amid the prospective amalgamation.
For the deal to get off the ground, it must be approved by the Competition Bureau and adhere to rules of the Canadian Transportation and Competition Acts. The approval would give the combined company 65% of all transatlantic seats in peak travel times. Experts consider the merger another coup in the evolution of air travel.
All corporate deals in Canada need the guidance of solid legal teams experienced in business and commercial law. A lawyer understands the dynamics of the laws to which corporations must yield when considering merging or amalgamating. These laws governed by various acts aren't easily understood or deciphered by those without legal acumen and a lawyer may be able to explain them in a way that makes sense to those involved.