Parties
Company
WestJet Airlines Ltd.
Company
Sunwing Travel Group Inc.
Government
Transport Canada
On March 2, 2022, WestJet Airlines Ltd. announced an agreement to acquire Sunwing Vacations and Sunwing Airlines from Sunwing Travel Group Inc. Following the acquisition, Sunwing would become a shareholder of WestJet, and a new tour operating business unit would be established under the WestJet Group, encompassing both Sunwing Vacations and WestJet Vacations Inc. The unit would be spearheaded by Sunwing CEO, Stephen Hunter. The operation will have its main office in Toronto and a secondary one in Laval, Quebec, promoting both Sunwing and WestJet Vacations brands. The WestJet Group's primary office will remain in Calgary. By October 26, 2022, The Competition Bureau raised concerns about potential competition reduction in vacation packages sales to Canadians due to this acquisition. Transport Canada had until December 5, 2022, for its public interest assessment. The final verdict on the acquisition was to be determined by the Cabinet, based on the Minister's recommendation. The Government of Canada gave its approval on March 10, 2023, with stringent conditions in place. The acquisition was finalized on May 1, 2023. Stephen Hunter was named the CEO of the WestJet Group's Vacations Business, which now includes both Sunwing and WestJet Vacations brands. Sunwing employees transitioned to the WestJet Group. Key advisors in the transaction included Torys LLP for Sunwing, and Canaccord Genuity Corp., Morgan Stanley, RBC Capital Markets, and Goodmans LLP for WestJet. The Bank of Nova Scotia and Barclays Capital Canada Inc. also provided financial advice. Dentons guided Transport Canada during the process.
Deal Type
Merger & AcquisitionIndustry
TransportationTransaction
Undisclosed/ConfidentialDeal Status
ClosedClosing Date
01 May 2023