Competition Commission of India’s (CCI) nod is among last of regulatory approvals for the deal
Reuters
New Delhi: Fair trade regulator CCI has approved the proposed acquisition of 24 per cent stake in Jet Airways by Abu Dhabi-based airline Etihad, which is acquiring the stake for Rs 2,058 crore in a deal that was announced this April, becoming the first-ever FDI (Foreign Direct Investment) in an Indian carrier by an overseas airline.
The clearance by the Competition Commission of India (CCI), whose nod is necessary for any major merger and acquisition deal involving an Indian entity, was among the last regulatory approvals for this transaction.
Among others, the deal has been already cleared by capital markets regulator Sebi, Foreign Investment Promotion Board (FIPB) and Cabinet Committee of Economic Affairs (CCEA).
The deal had to be revised after Sebi raised objections over a previous structure that involved Etihad possibly getting larger control over Jet Airways, which is a publicly listed company in India.
“Considering the facts on record and the details provided in the notice (under relevant section of the Competition Act)... the Commission is of the opinion that the proposed combination is not likely to have appreciable adverse effect on competition in India and therefore, the Commission hereby approves the same,” CCI said in an order.
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