tcook052

https://www.cbc.ca/news/canada/calga...oval-1.5246280

WestJet sale to Onex OK'd by Canadian Competition Bureau

DanJ

6 of the 32 years I have worked for my employer, we were owned by Onex. The only time in our history we worried about our future was under them. Good luck to WestJet.

tracon

Worried about the future of your company or the future of your career?
Has there been an Onex owned company that has gone under?

robsaw

My employer has gone through multiple private-public-private-public mergers, spin-offs over the years and I would say that the future was far more predictable under private ownership than public. I would say the specifics of the particular business unit are far more significant to Onex and its plans than whether it is Onex or not that is the private owner.

Fiordland

Latest reports in the Vancouver Sun are that Air Canada is challenging the deal under the grounds that the investment fund may not meet the 5!% CDN ownership.

The motives of AC could be questions, I don't think they are challenging this out of a patriotic desire to protect Canadian interests but out of the spirit if you can make it harder for your main competitor to raise money they better off you are. Leaving the motives aside, it is an interesting move.

james dean

Probably due to all the Love WJA has shown to their top competitor over the years..Lol!

aerobod

From Page 136, Schedule E of the agreement between WestJet and Onex (https://www.westjet.com/assets/wj-we...-agreement.pdf), Onex asserts:

"(9) Canadian Status. The Purchaser is not a “non-Canadian” as defined pursuant to
Section 3 of the ICA. The Purchaser is a “Canadian” as defined pursuant to Section 55(1)
of the CT Act.
(10) Purchaser Affiliates. Each of the Affiliates of the Purchaser that is directly or indirectly
owned or controlled by Onex and through which it indirectly controls the Purchaser is or
shall be upon formation duly formed and existing under the laws of Canada or a province
thereof, and Onex directly or indirectly owns or upon formation shall own a majority of
the voting interests in such Person and has or upon formation shall have control in fact
over such Person."

I'm sure all that is required is at most a tweak to the language to add future annual assertions to this state. I'm sure Onex will be throwing a few objections into the Air Transat takeover which I think will be a lot harder to solve than ensuring Onex or at least the Bidco subsidiary remains majority Canadian owned.

Fiordland

These two are always looking out for well being of each others legal team. Not to miss an opportunity to keep lawyers gainfully employed.

cirrusdragoon

It is official. Gerry Schwartz has his approval. I wish Onex and WestJet all the best fortune in their endeavour to expand a great airline.



WestJet and Onex have reached all required Canadian approvals

1) The court of Queen’s bench of Alberta

2)Canadian Competition Bureau

3)Canadian Transportation Agency

4)Transportation minister

5)Shareholder approval

as well as approvals related to antitrust laws from the U.S. Federal Trade Commission and the Antitrust Division of the Department of Justice.


https://www.theglobeandmail.com/amp/...main-canadian/

tcook052

https://www.cbc.ca/news/canada/calga...eio50OJPbGzHL8

Transportation regulator determines WestJet would remain Canadian after Onex deal

Frequentlander

https://business.financialpost.com/t...wner-onex-corp

Head to head with AC and their sub-brands - hopefully to some smaller centres in the east.

ricktoronto

From FP in 2015 - "Since its inception in 1984, Onex has invested in almost 80 companies, completed more than 480 acquisitions by itself and the companies it invests in, and recorded losses on just six of those investments, said Emma Thompson, an Onex spokeswoman. ... The company’s US$527 million acquisition of Hawker Beechcraft in 2007 was one of its rare losses. The Wichita-based business jet maker filed for bankruptcy protection in 2012 after a precipitous decline in executive jet sales in the fallout from the economic downturn."

No mention of the aggregate success vs. failure on that record of 474-6 but it's likely positive.

But not a market beater. TSX up 20% over the last 3 years (ending April before the WS offer), WS down 1.4% and Onex down 6.6% so an index fund would have been a better investment. (or other airlines - AC up 48%, CHR up 18% same period).

tracon

Depends on your time frame.

$3.19 in 1995 to $80 today.