Paving the way for closure of long- pending Jet-Etihad deal, fair trade regulator Competition Commission of India (CCI), on Tuesday, approved the proposed acquisition of 24 per cent stake in the Naresh Goyal-led carrier by the Abu Dhabi-based airline.
Etihad is acquiring this stake for Rs.2,058 crore in a deal that was announced in April.
“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,” the CCI said in an order.
The majority order, passed by CCI Chairman Ashok Chawla and four members, said the approval could be revoked if information provided by Jet and Etihad was found to be incorrect at any time.
Minority order
However, one CCI member passed a minority order dissenting with the majority view, and said the deal could have adverse impact on competition in international air travel market.
Dissenting member Anurag Goel said he was “of the prima facie opinion that the proposed combination is likely to cause an appreciable adverse effect on competition within the market of international air passenger transportation from and to India.”
“A notice may, therefore, be issued to show cause to the parties to the combination calling upon them to respond within 30 days of the receipt of the notice, as to why investigation in respect of the proposed combination should not be conducted,” his dissent order said.
The Commission said the approval is granted on the basis of “underlying competition assessment” based on information provided by the parties in their notice, which has been modified and supplemented from time to time.
“This approval should not be construed as immunity in any manner from subsequent proceedings before the Commission for violations of other provisions of the (Competition) Act.
