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Air Canada’s acquisition of Aeroplan clears regulatory hurdles

WATCH: Air Canada to buy Aeroplan — but what does it mean for you? – Aug 22, 2018

MONTREAL — Air Canada‘s acquisition of the Aeroplan loyalty program has received all required federal regulatory approvals ahead of a shareholders’ vote on a $450-million agreement reached by the airline in November.

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READ MORE: Air Canada inks deal to buy Aeroplan rewards program for $450M

Shareholders of current Aeroplan owner Aimia Inc. are scheduled to vote on the cash deal on Jan. 8.

Under their agreement, Air Canada will buy the Aeroplan business from Aimia for cash and also assume $1.9 billion of liabilities to points holders — partially backed by two banks that offer Aeroplan credit cards.

WATCH: Air Canada buying back Aeroplan

Toronto-Dominion Bank and the Canadian Imperial Bank of Commerce will pay Air Canada about $1.2 billion in total. The banks and Visa have agreed to stay with the loyalty program until at least 2030.

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Aimia and the Montreal-based airline said Monday they’ve received required clearances under the Competition Act and Canada Transportation Act.

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