:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2051578151-6229dca1ac6c44ad91378b5e64ac491e.jpg)
Key Takeaways
- Shares of Hawaiian Airlines parent Hawaiian Holdings dropped in intraday trading Monday on worries U.S. regulators will try to stop Alaska Air Group’s $1.9 billion purchase of the company.
- Officials were expected to finish their review and make a decision on Aug. 5, but the deadline was extended three times as negotiations continued.
- The agreement was first announced in December, sending Hawaiian Holding shares soaring at the time.
Shares of Hawaiian Airlines parent Hawaiian Holdings (HA) dropped in intraday trading Monday on concerns the Department of Justice (DOJ) may move to block Alaska Air Group’s (ALK) $1.9 billion purchase of the carrier.
The DOJ decision following a 90-day review was originally supposed to come by Aug. 5, but it was delayed three times as regulators and the airlines continued to negotiate over concessions needed to get government approval.
Merger Announced Last December But Has Been Under Review
The merger was announced last December, and in February the DOJ asked for more information in order to evaluate the possible antitrust implications. In May, the carriers said they had “certified substantial compliance,” kicking off the review period.
In Hawaiian Holdings’ second-quarter earnings call at the end of July, Chief Executive Officer (CEO) Peter Ingram said the company was “optimistic that the merger will achieve regulatory clearance in due course,” and that it and Alaska Air “have been working cooperatively with the DOJ and expect to continue to do so.”
Shares of Hawaiian Holdings, which have more than tripled since the deal was reported, fell about 4.5% to $15.86 as of 2:15 p.m. ET Monday. Alaska Air Group shares rose less than 1% Monday but have lost about 11% year-to-date.