Competition panel looking into Jet-Etihad Airways deal
22 May 2013
The Competition Commission of India (CCI) is examining the deal in which Adu Dhabi based Etihad Airways will buy a stake in Indian private carrier Jet Airways for around Rs2,000 crore.
The fair trade watchdog has received an application seeking approval for the proposed Jet-Etihad transaction. "We are looking into the deal," news agency PTI quoted an unnamed CCI official as saying.
In a merger & acquisition deal that only awaits final permissions from Indian authorities, Jet is selling a 24-per cent stake to Etihad. This would mark the first investment by a foreign carrier in an Indian airline since the government decided to allow foreign airlines to invest directly in Indian carriers.
Under the proposed deal, Jet Airways would offload 27.26 million shares in a preferential offer to Etihad at Rs754.74 each.
"The value of this equity investment is $379 million (Rs2,058 crore) and will result in Etihad Airways holding 24 per cent of the enlarged share capital of Jet Airways," the two airlines had said in April.
The alliance is expected to bring additional traffic, frequencies and revenues to airports in the India's big cities, as well as several smaller cities.