JetBlue agrees to buy Spirit Airlines for $3.8 billion after months of negotiations (Update)

It seems like JetBlue can become the airline to buy Spirit Airlines afterall. If you remember, in May, Spirit turned down JetBlue’s $3.6 billion buyout offer, as the company continued to pursue a deal with Frontier, but the situation has changed.

Follow Related press, after months of negotiations, it was announced that JetBlue had agreed to buy Spirit Airlines for a total of $3.8 billion. If all goes well and the purchase is approved by antitrust regulators, merging the two airlines would make them the fifth largest airline in the US.

Spirit CEO Ted Christie spoke out about the news and said: “Obviously a lot has been said over the past few months, always keeping our stakeholders in mind. We listened to the folks at JetBlue, and they have a lot of good thoughts on their plans for that. “

News of the two airlines merging came shortly after Spirit Airlines’ deal with Frontier fell apart.

Robin Hayes, CEO of JetBlue shared that he believes the company’s expansion will create competition for other leading airlines, including American, Delta, United and Southwest.

Both JetBlue and Spirit will continue to operate as two independent companies until the acquisition is approved by the regulators and Spirit shareholders. The transaction management and closing process is expected to close no later than the first half of 2024. Should such an agreement come to pass, JetBlue will “pay Spirit an opposite parting fee of $70 million and paid Spirit shareholders $400 million. “

Like before reported, Spirit and Frontier announced their $6.6 billion consolidation plan back in February, as they await federal and shareholder approval. JetBlue continuation with a $3.6 billion buyout offer in May.

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TSR EMPLOYEE: Jade Ashley @ Jade_Ashley94