Air Canada, an airline company, is holding discussions to buy leisure airline company Air Transat in a transaction likely to be valued at $520 million.

Under the deal, Air Canada has offered to acquire all of Transat A.T. Inc.’s shares for $9.56 per share.

Air Canada said that the acquisition enables the company to further grow its hub at Montreal-Trudeau Airport and also presents a unique opportunity for it to compete in leisure travel.

The companies have agreed to a 30 day period of exclusive negotiations toward a definitive agreement for Air Canada’s acquisition of Air Transat.