Alaska Air, Virgin America Receive DOJ Request for ‘More Information’ to Gain Approval for $2.6 Billion Deal
The regulatory approval process for Alaska Airlines’ planned acquisition of Virgin America is moving to the next stage. Both airlines said Monday they had received requests for more information on the proposed transaction from the U.S. Department of Justice.
Alaska Air Group, the parent of Alaska Airlines, announced a $2.6 billion offer to acquire Virgin American in early April.
The two airlines said that the “second request” is a standard part of the regulatory review and extends the period that they must wait to close the transaction, until 30 days after both have responded to the request or if the waiting period is otherwise terminated by the Justice Department.
Both carriers plan to respond promptly, they said, adding they are “confident” that they will obtain approval to close the deal no later than January 1, 2017.
Upon closing, which is subject to the approval of Virgin America’s shareholders and other customary closing conditions, the deal will create the nation’s fifth largest airline, although it will be much smaller than its four larger competitors, which together control 80% of the market.
(Photo: Accura Media Group)