Federal transport minister approves sale of WestJet to Onex at price reduced by 737 Max issues

A file photo of Federal Minister of Transport Marc Garneau. THE CANADIAN PRESS/Chris Young

Federal Transport Minister Marc Garneau has given his approval to the proposed $3.5-billion acquisition of WestJet Airlines by Onex Corp.

The Calgary-based airline says the minister determined the deal doesn’t raise public-interest issues for national transportation.

WestJet and Onex entered into a friendly deal last month to pay $31 per share cash for the airline, which will operate as a privately held company.

READ MORE: Onex’s purchase of WestJet prompts Moody’s credit ratings review for possible downgrade

Watch below: Some Global News videos about the sale of WestJet.

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The offer was a reduction from the preliminary price of $35.75 per share submitted in March due to uncertainties related to the grounding of Boeing 737 Max jets, according to the proxy circular provided to shareholders.

READ MORE: WestJet profits up despite lingering concerns over 737 Max grounding

Watch below: Some Global News videos about concerns raised with regard to 737 Max airplanes.

Garneau’s approval is one of the conditions for the deal to close.

The deal is also subject to other regulatory approvals and approval of WestJet shareholders at a meeting July 23.

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