During lockdown restrictions caused by the pandemic, airlines found themselves in a challenging financial situation, becoming potential targets for mergers and acquisitions. However, even prominent sector representatives required additional financing to survive and had no opportunities to purchase competitors.
After the crisis, not all airlines could regain their positions, with Hawaiian Holdings Inc. (NYSE: HA) being one of them. On 3 December 2023, Alaska Air Group Inc. (NYSE: ALK) announced its plans to acquire the company. Today, on 11 December 2023, we will delve into this deal, explore possible factors that could impede its completion, conduct a technical analysis of these shares, and examine their further outlook.
Overview of the acquisition
It was announced on 3 December 2023 that Alaska Air Group Inc. would purchase Hawaiian Holdings Inc. for 1.9 billion USD or 18 USD per share, 270% higher than the stock value recorded at the close of trading on 1 December 2023. It is worth noting that the overall deal value comprises a debt of 0.9 billion USD.
The parties have agreed that:
- Ben Minicucci, presently the president and chief executive officer of Alaska Air Group Inc., will be the CEO of the combined company
- Both Hawaiian Airlines and Alaska Air brands will be preserved
- The company will be headquartered in Seattle
- The deal is expected to close in 12-18 months
