Paving the way for the biggest deal in the aviation sector post the relaxation of foreign direct investment rules in September last year, the Competition Commission of India (CCI) has cleared the deal between Jet Airways and Etihad.
"Considering the facts on record and the details provided in the notice ... 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," read an order on CCI's website.
The majority order, passed by CCI chairman Ashok Chawla and four members, said that the approval can be revoked if information provided by Jet Airways and Etihad is found to be incorrect at any time.
With this clearance, the deal has cleared the final hurdle and Jet Airways will now have to get the change in board membership and changed shareholding structure approved by the civil aviation ministry.
Post the deal, Etihad would have 24 per cent stake in Jet Airways, promoter Naresh Goyal would have 51 per cent and public shareholders would have remaining 25 per cent. The new 12-member board will have two directors from Etihad and four directors from Jet, giving the Indian promoters more authority.