India: Etihad days away from verdict on Jet Airways buy

Sources say the United Arab Emirates’ airline Etihad is only days away from receiving a ruling by Indian regulators regarding its acquisition in India’s Jet Airways.

Two sources say India will rule soon on whether Etihad’s 24 percent acquisition of its competitor aligned with India competition rules. Etihad argued its case before the Securities and Exchange Board of India on Wednesday.

Regulators first subpoenaed Etihad earlier this year regarding the acquisition, questioning why the airline did not make an offer to public Jet shareholders. Under India rules, acquirers that purchase more than a 25 percent stake in a company, or acquirers that cause a significant management change in a company, must make an open offer to that firm.

Reports say Etihad’s future hinges on India’s decision, as key appointments for the companies have been delayed pending the Board’s ruling. The Competition Commission of India cleared the merger last November.

Full Content: LiveMint

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.