August 30, 2024
New Delhi, India
Vistara-Air India Merger
Singapore Airlines announced on Friday that it has received Foreign Direct Investment (FDI) approval from the Indian government for the proposed merger of Vistara with Air India. This merger will create one of the world’s largest airline groups, with Singapore Airlines acquiring a 25.1% stake in Air India. The merger is expected to be completed by the end of this year.
Key Approvals in Place for the Merger
Air India is currently owned by Tata Group, while Vistara operates as a 51:49 joint venture between Tata Group and Singapore Airlines. In its regulatory filing, Singapore Airlines stated that this FDI approval, along with other anti-trust and merger control clearances from both Indian and international authorities, represents a significant step towards finalizing the merger.
The Competition Commission of Singapore granted conditional approval for the merger in March, and the Competition Commission of India also approved it in September 2023.
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Timeline and Regulatory Compliance
The merger’s completion is subject to compliance with all applicable Indian laws. Singapore Airlines mentioned that discussions are ongoing to extend the long-stop date for completing the merger, which was initially set for October 31, 2024. The parties now expect the merger to be finalized by the end of 2024.
A Strategic Move for Expansion
With the FDI approval secured, the merger brings together the strengths of both airlines, enhancing their market reach and operational capabilities. This merger is set to create a larger, more competitive airline group that will be better positioned to serve the growing demand in the global aviation market.
As the merger process advances, both Singapore Airlines and Tata Group continue to work towards achieving compliance with all regulatory requirements, aiming for a smooth integration by year-end.
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