The Competition Commission has said Ajay Singh's acquisition of controlling stake in SpiceJet will have no "horizontal overlaps or vertical relationship" between the two parties.
As part of a revival plan, Singh has snapped up 58.46 per cent stake in SpiceJet after getting green signal from the Competition Commission of India (CCI).
Clearing the deal, the fair trade watchdog said it was not "likely to cause any appreciable adverse effect on competition in India".
In its order, dated February 19 and made public today, CCI said that Singh is not associated with the operations or ownership of any other existing airline.
"Accordingly, there are no horizontal overlaps or vertical relationship between the SpiceJet and the acquirer (Singh)... The proposed combination is a transfer of shares and control in SpiceJet from the sellers to the acquirer," it said.
Citing the notice given by Singh, CCI said that he is a first generation entrepreneur and has experience in the businesses of information technology and airline operations.
Singh, who co-founded the airline some years back, purchased 58.46 per cent stake from former promoters Marans as part of the revival plan that would also see Rs 1,500 crore capital infusion into the airline.
In a regulatory filing today, SpiceJet today informed that former promoters Kalanithi Maran and Kal Airways Private Ltd transferred their 58.46 per cent stake to Singh on February 23.
Maran had 24.84 per cent stake while that of Kal Airways was 33.62 per cent.
The board of SpiceJet, in late January, had approved transfer of Marans's stake to Singh.
Post the deal, Singh now holds over 60 per cent stake in the carrier.
