CCI clears InterGlobe Aviation-Caelum merger

The Competition Commission has approved the proposed merger of US-based Caelum Investment into InterGlobe Aviation, the holding company of budget airlines Indigo.
The Competition Commission of India in an order released today said that the "proposed combination is not likely to have an appreciable adverse effect on competition in India".
The regulator stated that Caelum does not have investments in any other air transport services company.
"It is observed that there is no horizontal overlap or vertical relation of any kind between InterGlobe Aviation and Caelum or any of their group companies," CCI said.
"Further, the proposed combination will not result in any change either in the structure of the market or the number of entities present in the business of air transport and ancillary services in India," it added.

As per details in the order, Caelum holds around 47.88 per cent stake in InterGlobe Aviation.
On the proposed merger, Caelum Members would directly hold shares in InterGlobe Aviation, which would be equal to the number of shares presently held by Caelum.
Caelum into InterGlobe Aviation had entered into "a scheme of amalgamation" on May 28, 2014, following which the entities had approached the fair trade regulator for approval on June 26.