Economic analysis and business valuation to assist with the evaluation of the proposed acquisition of Transat A.T. by Air Canada

Economic analysis and business valuation to assist with the evaluation of the proposed acquisition of Transat A.T. by Air Canada. Transport Canada is looking to retain the services of one or more contractor to conduct economic analysis and business valuation/accounting work in support of a notification to the Minister of Transport of a merger involving air transportation undertakings between Air Canada and Air Transat.  This request contains two streams, economic expertise (Stream 1) and business valuation expertise (Stream 2). A bidder may bid on either or both streams.  Bidders must clearly state whether they are bidding on Stream 1, Stream 2 or both. Should a bidder bid on both elements, they MUST separate the value of their bids into each stream. Objectives of the Requirement The contract objective is to assess and validate economic and financial implications that may arise from the approval and/or rejection of the merger application received by the department. The intent is to award one contract to the bidder who can provide services for both streams as stated in the Statement of Work. However, if no qualifying bids are received from one bidder for both streams, the department will consider awarding and evaluating the streams separately and awarding two contracts to two different bidders. Section 53 of the Canada Transportation Act legislates a notification/application process to the Minister of Transport for certain Canadian transportation undertakings (in this case, air carriers) involved with any potential merger, acquisition or joint venture. The Minister may choose to further examine the proposed transaction for public interest issues within prescribed legislative timelines. In order for Canada to properly assess the merits of the proposed transaction, Canada is looking to retain the services of economics and business valuation/accounting specialists. Any application submitted to the Minister of Transport for public interest considerations will also be submitted to the Commissioner of Competition [Competition Bureau, herein referred to as the Bureau] for anti-competition considerations. The Bureau will advise the Minister of Transport of their findings as part of the Minister’s overarching public interest assessment.  The Department must conduct independent financial and economic analyses during the public interest assessment period, with the following emphases: An economic analysis of price impacts on entire networks or regions, in addition to independent route-based price analyses as required Considerations of potential operating efficiencies gained and reductions in double marginalization from the proposed transaction, which can create downward pressure on price Further information on the merger & acquisition notification guidelines can be found below: https://www.tc.gc.ca/eng/policy/acg-acgb-mergers-guidelines-draft-3143.html