The federal government will conduct a public interest analysis on the deal to buy Sunwing Vacations and Sunwing Airlines from WestJet Airlines.
In a statement, Ottawa said Friday that the Commissioner of Competition will participate in the process to assess the impact of the agreement on competition.
The assessment included consultations with the airline industry and other stakeholders, other government departments, as well as representatives of other levels of government and the public.
Transport Canada will have until Dec. 5 to complete its assessment and submit it to the Department of Transport, which will make a recommendation to the cabinet on the deal, which must obtain regulatory approval.
WestJet announced plans in March to acquire Sunwing, a deal that would boost its leisure travel offer. The financial details of the deal, which will show Sunwing shareholders having a stake in WestJet Group, were not disclosed.
Under the agreement, WestJet said it intends to create a new travel business unit, based in Toronto, that includes Sunwing Vacations and WestJet Vacations. The airline will also expand to include Sunwing Airlines, which allows for increased capacity and year-round use of aircraft that are otherwise seasonal.
Source: Radio-Canada
