Fair trade regulator Competition Commission of India (CCI) is examining the over Rs.2,000 crore deal between leading carrier Jet Airways and Abu Dhabi-based Etihad Airways, reports said, quoting a senior official.
The CCI has received an application seeking approval for the proposed Jet-Etihad transaction.
Forging a strategic alliance, Jet Airways has decided to sell 24 percent stake to Etihad Airways for around Rs.2,058 crore or $379 million. The deal would mark the first investment by an overseas carrier in an Indian airline since the change in FDI policy.
Most of the merger and acquisition deals require approval from the CCI, which keeps a check on anti-competitive practices in the market place.
Under the proposed deal, Jet Airways would sell 27.26 million shares in a preferential offer to Etihad at R. 754.74 apiece.
The alliance is also expected to bring additional traffic, frequencies and revenues to metro airports, as well as several non-metro airports of the Airports Authority of India.
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