TORONTO – Approval under the Competition Act has been granted to the takeover of Vitran Corp. (TSX:VTN) by fellow trucking company TransForce (TSX:TFI), which came out the winner in a two-way bidding war late last year.
Under the deal, valued at US$136 million, including the assumption of US$29 million of Toronto-based Vitran’s debt, TransForce will acquire all the shares of Vitran it doesn’t already own for US$6.50 in cash.
Vitran says that with approval under the act, and subject to the satisfaction of remaining customary conditions, the deal should close by Wednesday.
Montreal-based TransForce, one of Canada’s largest trucking and logistics companies, originally bid US$4.50 per share for Vitran, but raised its offer and eventually defeated a rival bid by Manitoulin Transport.
Manitoulin received a $4-million termination fee under the terms of its white knight agreement with Vitran, which had signed a friendly takeover agreement at US$6 per share.