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JetBlue Says it Might Terminate Merger Deal With Spirit Airlines On Sunday But It’s Still Considering Options

JetBlue Says it Might Terminate Merger Deal With Spirit Airlines On Sunday But It’s Still Considering Options

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JetBlue has informed Spirit Airlines that it might terminate their proposed merger because “certain conditions” attached to the merger agreement may not be satisfied in line with a timeline set out in the deal.

The merger agreement could be terminated from Sunday if the unspecified conditions are not met.

In a statement, JetBlue said it told Spirit of the situation on Thursday but that it was continuing to “evaluate all options” under the merger agreement.

The announcement is the latest setback in JetBlue’s proposed acquisition of Spirit after a federal judge blocked the merger last week in a 113-page judgement that ruled the acquisition of Spirit would harm consumers who relied on the ultra-low-cost carrier’s basket basement fares to see friends and family.

The judge did, however, give the airlines leave to appeal the decision, and JetBlue and Spirit filed a joint appeal shortly after.

The update to investors immediately set shares in Spirit Airlines tumbling once again. Spirit said there was no reason for JetBlue to terminate the merger agreement.

JetBlue first made its surprise bid for Spirit Airlines in April 2022 after the low-cost carrier had already struck a deal with Frontier Airlines for a merger.

Ultimately, JetBlue prevailed by vastly overpaying with a valuation of $33 per share in Spirit. JetBlue wants to end the Spirit brand and assimilate its aircraft and employees as a quick but not risk free way to quickly expand its fleet and network.

The proposed takeover was opposed by the Biden administration which fears the merger will drive up air fares. Judge William Young sided with the Justice Department in its antitrust suit against JetBlue, ruling that the merger would harm cash strapped American families.

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