Calgary

Garneau approves sale of WestJet to Onex at price reduced by 737 Max issues

Federal Transport Minister Marc Garneau has given his approval to the proposed $3.5-billion acquisition of WestJet Airlines by Onex Corp. The airline says the minister determined the deal doesn't raise public-interest issues for national transportation.

WestJet and Onex entered into a friendly deal last month to pay $31 per share cash for the airline

The approval of Federal Transport Minister Marc Garneau is a condition for the $3.5 billion deal to close between Onex Corp. and Westjet Airlines Ltd. (Canadian Press)

Federal Transport Minister Marc Garneau has given his approval to the proposed $3.5-billion acquisition of WestJet Airlines by Onex Corp.

The Calgary-based airline says the minister determined the deal doesn't raise public-interest issues for national transportation.

WestJet and Onex entered into a friendly deal last month to pay $31 per share cash for the airline, which will operate as a privately held company.

The offer was a reduction from the preliminary price of $35.75 per share submitted in March due to uncertainties related to the grounding of Boeing 737 Max jets, according to the proxy circular provided to shareholders.

Garneau's approval is one of the conditions for the deal to close.

The deal is also subject to other regulatory approvals and approval of WestJet shareholders at a meeting July 23.

Comments

To encourage thoughtful and respectful conversations, first and last names will appear with each submission to CBC/Radio-Canada's online communities (except in children and youth-oriented communities). Pseudonyms will no longer be permitted.

By submitting a comment, you accept that CBC has the right to reproduce and publish that comment in whole or in part, in any manner CBC chooses. Please note that CBC does not endorse the opinions expressed in comments. Comments on this story are moderated according to our Submission Guidelines. Comments are welcome while open. We reserve the right to close comments at any time.