JetBlue Airways Corp. and Spirit Airlines Inc. said Monday they have reached an agreement to terminate their July 2022 merger agreement, sending the former’s stock up 6% in early trade. “Although both companies continue to believe in the procompetitive benefits of the combination, JetBlue
JBLU,
-0.15%
and Spirit
SAVE,
+0.16%
mutually agreed that terminating is the best path forward for both companies as required closing conditions, including receiving necessary legal and regulatory approvals, were unlikely to be met by the merger agreement’s outside date of July 24, 2024,” JetBlue said in a statement.
JetBlue Chief Executive Joanna Geraghty said the pair believed their combination would have created a national, low-fare, high-value competitor to the big four airlines. But in January, the deal was put in peril when a court sided with the Justice Department in saying that a merger between low-cost JetBlue and ultra-low-cost Spirit would hurt competition. The companies had appealed the ruling. See also: JetBlue still evaluating options of Spirit merger, stock drops after earnings JetBlue will now pay Spirit a $69 million breakup fee to release all claims between the two companies. “JetBlue has a strong organic plan and unique competitive advantages, including a beloved brand, a uniqu …
Article Attribution | Read More at Article Source
JBLU,
-0.15%
and Spirit
SAVE,
+0.16%
mutually agreed that terminating is the best path forward for both companies as required closing conditions, including receiving necessary legal and regulatory approvals, were unlikely to be met by the merger agreement’s outside date of July 24, 2024,” JetBlue said in a statement.
JetBlue Chief Executive Joanna Geraghty said the pair believed their combination would have created a national, low-fare, high-value competitor to the big four airlines. But in January, the deal was put in peril when a court sided with the Justice Department in saying that a merger between low-cost JetBlue and ultra-low-cost Spirit would hurt competition. The companies had appealed the ruling. See also: JetBlue still evaluating options of Spirit merger, stock drops after earnings JetBlue will now pay Spirit a $69 million breakup fee to release all claims between the two companies. “JetBlue has a strong organic plan and unique competitive advantages, including a beloved brand, a uniqu …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]