MONTREAL — European regulatory authorities have resumed their ************* into **********’s proposed purchase of Transat AT, giving themselves a few more months to hand down a decision.

The European Commission, which was awaiting additional data from the two Canadian travel companies, says it will reach a conclusion by Dec. 12.

The commission’s antitrust body launched the ************* into the $720-million deal in May to determine whether it would hurt competition in Canadian and European markets.

A preliminary review by the EU executive branch found that the would-be transaction could significantly reduce competition on 33 routes between the two jurisdictions.

The finding aligned with concerns highlighted by Canada’s Competition Bureau, which warned in March — based on information collected prior to the ******** ******** — that eliminating the rivalry between the two Montreal-based carriers would prompt pricier fares and fewer services.

The bureau said the takeover would give ********** control of more than 60 per cent of transatlantic air travel from Canada and 45 per cent of passenger capacity to sun destinations.

The Trudeau government has not yet announced a decision on the deal.

Transat spokesman Christophe Hennebelle says that “economic studies on competition” were among the documents submitted to European regulators.

********** did not immediately reply to requests for comment.

Transat has said it expects to close the deal in the fourth quarter of the year.

SOURCE: The Canadian Press