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HindustanTimes Sat,25 Oct 2014

Jet-Etihad deal: CCI to have more discussions before final view

PTI  New Delhi, October 27, 2013
First Published: 18:55 IST(27/10/2013) | Last Updated: 18:59 IST(27/10/2013)
Fair trade watchdog Competition Commission of India will have more discussions before taking a final view on the proposed Rs. 2,058 crore Jet-Etihad deal, the single largest foreign direct investment so far in Indian aviation sector.

 
Naresh Goyal-promoted Jet Airway's proposed sale of 24% stake to Abu Dhabi-based carrier Etihad has already received the government clearance.
 
Sources said the Competition Commission of India (CCI) is yet to take a final view on the proposed deal. The regulator would have more discussions before taking a call, they added.
    
CCI, which has the mandate to keep a tab on unfair trade practices at market place, had sought more information from the concerned parties on the proposed transaction.
    
The deal was approved by the Cabinet Committee on Economic Affairs (CCEA) earlier this month. It has also received green signal from capital market regulator Securities and Exchange Board of India (Sebi) as well as the Foreign Investment Promotion Board (FIPB).
 
Post the transaction, Naresh Goyal would have 51% in Jet Airways while Etihad would hold 24%. The remaining shareholding would be with the public.
    
In July, the FIPB had given the clearance with some conditions after both parties assured it that 'effective control' would remain with local promoters.
 
As per the proposal, Etihad would purchase 27,263,372 shares of Jet at Rs. 10 each, amounting to 24% of post-issue paid-up equity share capital for Rs. 2,057.66 crore.
    
Jet-Etihad deal is so far the single-largest FDI in Indian aviation sector.
    
Announced in April, the stake sale faced regulatory hurdles as it was perceived that effective control could be with Etihad. Later, the terms of the deal were amended before getting approvals from various regulators.
    
Recently, the government approved two other aviation deals involving foreign carriers -- diversified group Tatas' joint ventures with Malaysia's AirAsia and Singapore Airlines.
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