New Delhi: Abu Dhabi carrier Etihad’s Rs 2,058-crore stake purchase in Jet Airways has hit a regulatory air pocket, as regulators are seeking more clarity on the deal to ensure overall competition in the aviation market is not affected and interests of public shareholders and consumers are protected.
Separate clarifications have been sought on the deal, which involves a 24 per cent stake purchase in Jet by Etihad and is the first investment by a foreign carrier in an Indian airline, by capital markets regulator SEBI (Securities and Exchange Board of India) and fair trade watchdog CCI (Competition Commission of India).
While the queries raised by the two regulators are different, both of them are concerned about certain contours of the transaction that indicate a larger control of Etihad in Naresh Goyal-led Indian carrier despite the purchase of only 24 per cent stake, sources said.
23/05/13 PTI/Business Line
