In an encouraging sign for Allegiant, Sun Country, and their proposed $1.5 billion merger, federal regulators have cut short a congressionally-mandated waiting period, allowing the deal to move forward slightly sooner than expected.
The carriers announced the early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act in a joint statement on Monday. The legislation imposes a waiting period on certain mergers and acquisitions, though the exact length of the delay depends on the nature of the transaction.
The early green light is not an automatic approval. Allegiant and Sun Country must meet other closing conditions, and the U.S. Department of Transportation must sign off on an interim exemption application. Additionally, the shareholders of each company must approve the linkup.
“We are pleased to receive U.S. antitrust clearance from the Department of Justice,” Allegiant CEO Greg Anderson said in a news release. “We remain confident that this combination will deliver meaningful benefits for our customers, team members, and the communities we serve. Together, Allegiant and Sun Country will create a stronger leisure-focused airline, offering a broader network, more travel options, and increased long-term value creation for our shareholders.”
Allegiant is set to acquire Sun Country in a cash-and-stock deal valuing Sun Country at $18.89 per share.
The combined airline would serve about 22 million customers annually and operate in nearly 175 cities.
The merger is now expected to close in the second or third quarter of this year.
