The company that owns Air Transat has agreed to be taken over by Air Canada for $13 a share.
The two companies announced in May they had entered negotiations toward a possible deal and gave themselves 30 days to hammer out the details.
That period expired on Wednesday, and on Thursday morning they announced a deal that would see Air Canada buy Transat A.T. Inc. for $13 per share, which values the company at $520 million.
The plan is to maintain the two companies as separate entities, maintaining the two different brands, head offices and key functions in Montreal, the companies said in a release.
“This combination delivers excellent value, while also providing increased job security for both companies’ employees through greater growth prospects,” Air Canada CEO Calin Rovinescu said.
Transat CEO Jean-Marc Eustache said the deal represents “the ideal platform for Transat’s presence and jobs in Montreal, and therefore represents the best option for all our stakeholders: employees, suppliers, partners and shareholders.”