The country’s trade regulator Competition Commission of India (CCI) on Tuesday approved the long pending Jet-Etihad deal, thereby paving the way for Abu Dhabi- based Etihad to acquire a 24% stake in Naresh Goyal-led Jet Airways.
In a deal announced in April this year, Etihad had proposed to pick up 24% stake in Jet Airways for $325 million (`2,070 crore). This is the first-ever foreign direct investment (FDI) in an Indian carrier by an overseas airline.
“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 its order.
The majority order, passed by CCI chairman Ashok Chawla and four members, said that the approval can be revoked if information provided by Jet and Etihad is found to be incorrect at any time.
However, one CCI member Anurag Goel passed a minority order dissenting with the majority view and said the deal could have adverse impact on competition in international air travel market.
The Jet-Etihad deal has been stuck for months for want of various regulatory approvals. The clearance by the CCI was among the last regulatory approvals for this transaction.