Spirit Airlines today announced that its stockholders approved the merger agreement with JetBlue Airways Corporation . Based on the preliminary voting results provided by the independent inspector of election at the special meeting of stockholders held today, more than 50% of the outstanding shares of Spirit common stock voted in favor of the transaction.
The final voting results of the special meeting, as tabulated by an independent inspector of elections, will be filed on a Form 8-K with the U.S. Securities and Exchange Commission.
Ted Christie, President and CEO of Spirit Airlines, said,
"This is an important step forward on our path to closing a combination that will create the most compelling national low-fare challenger to the dominant U.S. carriers. We look forward to continuing our ongoing discussions with regulators as we work toward completing the transaction and delivering value to Team Members, Guests and stockholders."
The completion of the transaction is subject to customary closing conditions, including receipt of required regulatory approvals. Spirit and JetBlue expect to conclude the regulatory process and close the transaction no later than the first half of 2024.
However , you can see headwinds , Last month , Senator Elizabeth Warren on JetBlue-Spirit Airlines Merger said :
"We don't need yet another big merger in the already highly consolidated airline industry . When airlines get bigger, passengers face higher prices, more delays & fewer choices. I'm urging 'US DoT' to use its authority to block mergers that harm competition."
She is asking DoT to invoke a rarely used authority from the 1950s to reason out that the $3.8 billion deal won't be “consistent with the public interest”.
Barclays and Morgan Stanley & Co. LLC are serving as financial advisors to Spirit, and Debevoise & Plimpton LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP are serving as legal advisors.
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