MONTREAL -- After a hiatus of about two months, European regulatory authorities have resumed studying the transaction proposed to place Transat A.T. under the wing of Air Canada, giving themselves a few more months to decide.
In a recent update, the European Commission, which was awaiting further documentation from the two companies, set the deadline for Dec. 11.
European regulators had decided to take a deeper look at the $720 million deal after raising concerns that the purchase could lead to higher prices and a lower supply.
Transat A.T. spokesperson Christophe Hennebelle said Tuesday that "economic studies on the competition'' were among the documents transmitted. Air Canada did not provide details.
The Commission's preliminary analysis highlighted in particular that there could be diminished competition on 33 routes between Canada and Europe if Air Canada were to acquire the Quebec tour operator. In March, the Competition Bureau of Canada was also unfavourable to the transaction, but that analysis was carried out before the outbreak of the pandemic.
The Trudeau government's decision has not yet been made.
This report by The Canadian Press was first published Sept. 1, 2020.
