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US: Alaska Air, Virgin America, receive DOJ request for additional information

 |  May 17, 2016

Alaska Air Group, which in early April announced a $2.6 billion offer to acquire Virgin America Inc., said it and its target have received a request for more information on the proposed transaction from the US Justice Department.

The two carriers said the so-called “second request,” is a “standard part” of antitrust regulators’ review process and said they are cooperating fully with the Justice Department. The request for more information extends the period that the parties must wait to close the transaction, until 30 days after they have complied with the request or if the waiting period is otherwise terminated by the government.

Alaska Air Group, parent of Alaska Airlines, and Virgin America said they would respond “promptly” and are “confident” they will obtain regulatory approval to complete their transaction no later than Jan. 1, 2017.

Eleven days after they announced the planned deal, the two submitted paperwork outlining the transaction to the government, as required by the Hart-Scott-Rodino Antitrust Improvement Act. This gives the Justice Department time to review the proposed transaction ahead of time and determine whether it is anticompetitive.

Full Content: The Wall Street Journal

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