Etihad's 24% acquisition of Jet Airways gets Indian regulator's nod

Jet Airways shares have surged 8% per cent in early trade after news that the Indian foreign investment regulator, the Foreign Investment Promotion Board (FIPB), had given Etihad Airways the go-ahead to acquire a 24% stake in the Indian carrier and valued at USD379million. 

The deal, announced in April, had come under scrutiny amid concern over who would control the airline's operations. As a result, the FIPB has imposed certain restrictions on the deal, with Etihad agreeing to reduce the number of seats it would hold on the Jet board. Any arbitration between the two carriers will also have to be conducted according to Indian law while any changes in the airline's shareholding will require Indian government clearance first. The deal now goes to the Indian Cabinet Committee on Economic Affairs for final clearance, with The Hindustan Times quoting official sources as saying that "it might be given within a week."

Source CH-Aviation