Transat confirmed on Friday (12 February) the deal had been signed off by Transport Canada.

The terms date to a revised arrangement between Transat and Air Canada agreed last October, which will see flag carrier Air Canada take over its budget rival for C$5 per share as opposed to the C$18 per share rate agreed in 2019.

Final confirmation is yet subject to approval by competition authorities and the European Commission. A decision is expected during the first half of 2021.

"We are currently working on adjusting all of the deadlines, including our financing agreements, in order to align them with the anticipated completion of the commission’s review process," said Jean-Yves Leblanc, chair of the special committee of the board of directors of Transat.

Montreal-based Transat offers packages, hotel stays and air travel to more than 60 destinations in some 25 countries across the Americas and Europe under its Transat and Air Transat brands.