JetBlue Airways Corporation (NASDAQ:JBLU) announced the termination of a deal Monday to acquire Spirit Airlines Inc. (NASDAQ:SAVE) for $3.8 billion, following a decisive legal blockade by the Department of Justice.
This decision follows the blockage of the transaction by the U.S. District Court for the District of Massachusetts, citing a breach of antitrust laws aimed at safeguarding the market and its participants from anti-competitive harm.
As a consequence of this termination, JetBlue is set to pay Spirit a $69-million termination fee, effectively settling all disputes related to the failed merger.
The Justice Department said its decision was rooted in antitrust violations, highlighting need to preserve competitive fares and choices for American travelers.
Justice Department Hails Decision As Consumer Victory
The blockage of the merger was celebrated by the Justice Department as a significant victory for consumer protection.
Attorney General Merrick Garland remarked: “Today’s decision by …
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