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Key Takeaways
- Alaska Air Group said the deadline for the U.S. Department of Justice (DOJ) to review its $1.9 billion purchase of Hawaiian Holdings expired, moving the deal closer to completion.
- The merger had been delayed as the DOJ looked into possible antitrust issues.
- The carrier said only the Department of Transportation (DOT) remains to approve the acquisition.
Shares of Hawaiian Airlines parent Hawaiian Holdings (HA) took off Tuesday after the U.S. Department of Justice (DOJ) chose not to block Alaska Air Group’s (ALK) $1.9 billion acquisition of the carrier.
Alaska Air said in a statement Monday night that the time period for the DOJ to complete its regulatory investigation of the deal had expired, which the airline called “a significant milestone in the process to join our airlines.”
The airline said the deal still required approval from the Department of Transportation. It added that once that is received, and the customary closing conditions are satisfied, “we will complete work to close the transaction, and proceed with integrating the two companies.”
DOJ Had Been Holding Up Merger as It Undertakes Antitrust Review
The merger, which was originally announced back in December, had been held up as the DOJ evaluated possible antitrust implications. The deadline for that process to be finished was pushed back three times as the sides negotiated the conditions necessary to get regulatory approval.
Concerns that the DOJ would block the combination sent shares of Hawaiian Holdings tumbling yesterday.
Hawaiian shares rose 11% as of 10 a.m. ET Tuesday and are now up almost 25% this year. Alaska Air Group shares were little changed.
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