Pierre Karl Peladeau Offer for Transat Still On The Table, He Says
April 5, 2021 Jim Byers
Quebecor Inc. president Pierre Karl Peladeau says his offer for Air Transat is still valid.
Peladeau made headlines in December when he offered to buy Transat for about $5 per share. Transat rejected the offer, saying it preferred a proposal made by Air Canada.
But Air Canada and Transat last Friday announced that their proposed deal was not going ahead because the European Commission was putting too many restrictions on the deal. That clears the way for Peladeau to try again.
“This proposal is still valid and includes certain conditions that Mr. Peladeau wishes to lift quickly in order to remove the company from the state of uncertainty in which it has been for several months,” according to a press release issued by Quebecor spokesperson Annick Bélanger.
The document also says Peladeau wants to focus on sectors of the company with high-growth potential, job creation in Quebec, and on the development of the head office in Montreal. It also notes that an independent Transat would maintain competitiveness in the marketplace.
“By purchasing Transat, being a direct competitor for the vast majority of transatlantic routes and “sun destinations,” Air Canada would have captured more than 60% of the market, an unacceptable threshold that would have deprived consumers of competition in terms of prices,” Peladeau told TVA Nouvelles.
“It’s an exceptional brand. It is a brand for which Quebecers have an affection.”
“I think we will be very successful in the months and years to come,” he said.
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