New Delhi: The Competition Commission of India (CCI) has given its nod to the Jet Airways-Etihad deal, paving the way for the Abu Dhabi-based airline to acquire 24 per cent in the Indian carrier. In its order issued on Tuesday, CCI ruled the proposed combination “is not likely to have appreciable adverse effect on competition in India”.
The majority order, passed by CCI chairman Ashok Chawla and four members, said the approval can be revoked if information provided by Jet and Etihad is found to be incorrect at any time. One CCI member, Anurag Goel, dissented with the majority view.
The anti-trust body’s clearance means that both sides can go ahead with the transaction. According to sources, Etihad's investment in Jet Airways is likely to be completed in the next 15 days. Jet Airways’ chairman Naresh Goyal will sell six per cent stake in the airline in an offer-for-sale to bring down his shareholding to 51 per cent according to the Securities and Exchange Board of India’s (Sebi) order. The stake sale to Etihad will happen subsequent to that sale.
The Rs 2,060-crore deal and the increase in traffic rights to Abu Dhabi had generated a lot of controversy and political opposition, leading to litigation.
12/11/13 Business Standard
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The majority order, passed by CCI chairman Ashok Chawla and four members, said the approval can be revoked if information provided by Jet and Etihad is found to be incorrect at any time. One CCI member, Anurag Goel, dissented with the majority view.
The anti-trust body’s clearance means that both sides can go ahead with the transaction. According to sources, Etihad's investment in Jet Airways is likely to be completed in the next 15 days. Jet Airways’ chairman Naresh Goyal will sell six per cent stake in the airline in an offer-for-sale to bring down his shareholding to 51 per cent according to the Securities and Exchange Board of India’s (Sebi) order. The stake sale to Etihad will happen subsequent to that sale.
The Rs 2,060-crore deal and the increase in traffic rights to Abu Dhabi had generated a lot of controversy and political opposition, leading to litigation.
12/11/13 Business Standard
