Fair trade regulator Competition Commission is examining the over Rs 2,000-crore 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. "We are looking into the deal," a senior CCI official said
However, the Jet-Etihad deal is unlikely to get a go-ahead from the competition watchdog before the end of June. The CCI is likely to seek further clarifications from the two companies.
While the CCI is unlikely to seek clarifications on domestic operations, it would seek clarity on the impact of the deal on international operations specially related to routing arrangements through gulf countries. CCI is also likely to seek more information to ascertain impact on number of airport slots held by various operators.
Also read: Online travel cos overjoyed as govt unbundles airfares
Most of the merger and acquisition deals require approval from the Commission, which keeps a tab on anti-competitive practices in the market place.
Jet Airways stock price
On May 29, 2015, at 09:37 hrs Jet Airways was quoting at Rs 397.00, up Rs 13.20, or 3.44 percent. The 52-week high of the share was Rs 543.50 and the 52-week low was Rs 203.50.
The latest book value of the company is Rs -223.87 per share. At current value, the price-to-book value of the company was -1.77.
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