The US Department of Justice (DOJ) has approved Allegiant Travel’s planned acquisition of Sun Country Airlines, and the companies now anticipate closing the deal a bit earlier than previously expected.
Allegiant Travel, which owns discount airline Allegiant Air, on 16 March said it received from the DOJ “US antitrust clearance”.
With the approval, Allegiant now says it expects the acquisition will close in the second or third quarter of this year. Previously, it anticipated closing the deal in the second half of 2026.
Allegiant does not respond to questions about why it moved forward the timeline.
The Las Vegas company also says a mandatory waiting period required under US law has been terminated early.
That law prohibits companies involved in mergers from closing combinations prior to expiration of a waiting period, typically 30 days – unless they receive prior government clearance. The waiting period allows regulators to evaluate whether the deal would violate antitrust laws.
“Receiving US antitrust clearance is an important step toward completing the combination of the two airlines,” says Allegiant, adding the deal still requires approval by shareholders and the US Department of Transportation.
The DOJ did not immediately respond to a request to confirm it has green lighted the combination.
The deal calls for Allegiant to purchase competitor Sun Country, based in Minneapolis, with cash and stock for roughly $850 million, based on Allegiant’s current stock price. The deal was worth $1 billion when the companies revealed the acquisition.
The airlines say the combination will create a discount airline better positioned to compete against much larger carriers in a highly-consolidated industry. Following the merger, the company will have 195 aircraft and fly to 175 airports.
