June 27 (Reuters) - Air Canada AC.TO said on Thursday Transat AT Inc TRZ.TO had accepted its all-cash offer of C$520 million ($396 million) for the Canadian tour operator.
Discussions between Canada's largest airline and Transat began in May, with real estate developer Group Mach Inc earlier this month offering C$14 per share, topping Air Canada's bid by C$1 per share.
Air Canada and Transat were locked in an exclusivity period that ended on Wednesday.
($1 = 1.3127 Canadian dollars)