JetBlue buys Spirit Airlines
Spirit Airlines $SAVE has been the best performing airline stock over the past year after receiving takeover bids from both JetBlue $JBLU and Frontier $ULCC. JetBlue appears to have had the winning bid. Let’s take a closer look at this deal!
In February, $SAVE announced plans to merge with $ULCC leading to the stock’s outperformance. $JBLU then came in with a higher offer and on July 27th Spirit took it. There’s been some interesting price action as a result!
This merger combines two of the smaller players in the industry but the combined airline would have $11B in revenue and represent 10% of the industry according to Forbes.
Anti-trust regulators aren’t happy. They had previously sued to block a combination of American Airlines $AAL and JetBlue $JBLU.
Want to read about what JetBlue $JBLU needs in order for this deal to go through?
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Pretty sure JetBlue will do a good job with this merger. Fan of this.