The Clap
Spirit Airlines has terminated its merger agreement with Frontier, months after a rival bid by JetBlue Airways complicated talks.
The Deets
Following a merger saga since February, Spirit has decided to end talks with Frontier.
They are still in talks with JetBlue. A merger between Spirit and JetBlue would create the country’s fifth-largest airline.
The termination of the Spirit-Frontier deal makes it easier to get to a takeover deal done with JetBlue. JetBlue is seeking to buy Spirit for about $3.7 billion. The talks are not yet final and this deal could also potentially fall apart.
Will this deal happen?
Spirit believes it is unlikely regulators will approve this takeover. Even if JetBlue and Spirit reach a deal they would face a big obstacle for the Justice Department’s blessing. The Biden administration has vowed to crack down on consolidation.
“No deal!” – Spirit ends merger talks with Frontier ✈️
