US: Alaska Air said nearing settlement with on Virgin deal

Alaska Air Group is close to reaching a settlement with US antitrust officials that will allow it to complete its proposed acquisition of Virgin America, according to people familiar with the matter.

The settlement with the Justice Department’s antitrust division should be announced by the end of November, said one of the people. The people declined to be named because the negotiations are confidential. Details of the settlement couldn’t be learned.

The development means the companies have made progress since representatives of Alaska Air and Virgin America met with antitrust division chief Renata Hesse and other officials in September. At that time the government had concerns that the $2.6 billion transaction might pose a risk to competition, a person familiar with the situation previously told Bloomberg News. Such top-level meetings have often signaled that the antitrust division has worries about a merger that could lead to a lawsuit seeking to block it.

Spokespeople for the airlines didn’t immediately respond to requests for comment. The Justice Department declined to comment about the merger review.

Full content: Bloomberg

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