The Superior Court of Quebec has approved the proposed combination of Air Canada and Canadian tour operator Transat.

Transat is the parent company of Canadian leisure airline Air Transat, which serves 60 destinations in 25 countries.

The approval follows after the shareholders of Transat held a special meeting on 23 August, during which nearly 95% of them approved the sale.

Air Canada earlier reached an exclusive agreement to acquire all issued and outstanding shares of Transat for C$520m ($386.93m).

The two companies entered a definitive arrangement agreement in relation to the acquisition.

Under the agreement, Air Canada agreed to acquire all outstanding shares of Transat for $13 a share.

On 13 August, Air Canada increased its offer to acquire the company, bringing the total deal value to C$720m ($544.1m).

The parties also amended the arrangement agreement signed in June and increased the acquisition price from $13 to $18 a share.

In addition, a lock-up and support agreement was signed with Letko Brosseau and Associates, which holds the largest share with 19.3%.

The deal will now advance according to the Canada Business Corporations Act, where it will move forward in the form of a plan of arrangement approved by the court.

The transaction is still dependent on the receipt of regulatory approvals and fulfilling other closing conditions.

The purchase is expected to be completed next year.

Air Canada is Canada’s largest domestic and international airline operator that offers direct passenger services to more than 220 destinations on six continents.