Fair trade regulator CCI today said it is examining the over Rs2,000 crore proposed deal between leading carrier Jet Airways and Abu Dhabi-based Etihad Airways.
The Competition Commission of India (CCI) has received an application seeking approval for the proposed Jet-Etihad transaction.
"They have filed for the approval for the merger and we are examining the deal," CCI Chairman Ashok Chawla told reporters here.
However, he did not give any time-frame in which CCI would clear the deal. Forging a strategic alliance, Jet Airways has decided to sell 24 per cent stake to Etihad Airways for about Rs 2,058 crore. The deal would mark the first investment by a foreign carrier in an Indian airline since the change in FDI policy.
Most of the merger and acquisition deals require approval from the Commission, which keeps a tab on anti-competitive practices in the market place.
Under the proposed deal, Jet Airways would offload sell 27.26 million shares in a preferential offer to Etihad at Rs 754.74 a piece.
"The value of this equity investment is $379 million (about 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.