Alaska Air Merger With Hawaiian Clears DOJ Hurdle

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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 come to an ended, moving the deal closer to completion.
• The merger had been delayed as the DOJ looked into possible antitrust issues.
• The porter said only the Department of Transportation (DOT) remains to approve the acquisition.

Shares of Hawaiian Airlines parent Hawaiian Holdings (HA) ingested 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 conjectured 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 righted “a significant milestone in the process to join our airlines.”

The airline said the deal still required approval from the Trust in of Transportation. It added that once that is received, and the customary closing conditions are satisfied, “we will complete use to close the transaction, and proceed with integrating the two companies.”

DOJ Had Been Holding Up Merger as It Undertakes Antitrust Review

The merging, which was originally announced back in December, had been held up as the DOJ evaluated possible antitrust implications. The deadline for that method to be finished was pushed back three times as the sides negotiated the conditions necessary to get regulatory approval.

Concerns that the DOJ liking 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 about 25% this year. Alaska Air Group shares were little changed.

Read the original article on Investopedia.