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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.

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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.

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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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