Shares of Hawaiian Holdings, the parent company of Hawaiian Airlines, surged more than 11% on Tuesday after its proposed merger with Alaska Air cleared a major hurdle.
Back in December, Alaska Air made a bid that would see it pay $18 per share in cash and provide another $900 million to clear Hawaiian’s debt. Now, Alaska announced that the U.S. Department of Justice won’t challenge the merger, bringing the deal significantly closer to the finishing line.
Before the merger is complete, Alaska and Hawaiian only need to get the approval of the U.S. Department of Transportation (DOT). The two companies are already working on resolving issues that have been identified by DOT as potential obstacles.
“Following that step, we will complete work to close the transaction and proceed with integrating the two companies, welcoming Hawaiian Airlines guests and employees into Alaska Air Group, and expanding benefits and choices for consumers throughout Hawai’i, the Asia-Pacific region, continental United States and globally,” Alaska Airlines said in a statement.
When they initially announced the merger, Alaska and Hawaiian said they were looking to form a strong company that would be better positioned to compete with bigger airliners. If the deal goes through, both companies will keep their respective brands.
Hawaiian’s stock jumped 11.34% on Tuesday to close at $17.68 per share. The company’s shares are now 26.02% up year-to-date.