Air India-Vistara merger: Singapore Airlines has received approval from the Indian government for foreign direct investment (FDI) for the proposed merger of Air India and Vistara. Vistara is a joint venture between Tatas and Singapore Airlines.
Singapore Airlines would acquire a 25.1 per cent stake in Air India. With the clearance in order, the deal would be completed by the end of this year.
“The FDI approval, together with antitrust and merger control clearances and approvals, as well as other governmental and regulatory approvals received to-date, represent a significant development towards the completion of the proposed merger,” the airline said in the filing to the Singapore Stock Exchange.
The airline has announced that the completion of the merger is still subject to compliance with applicable Indian laws and is expected to be completed in the next few months. The proposed merger is anticipated to occur by the end of 2024.
Singapore Airlines stated that discussions are ongoing to extend the long stop date for the merger, which was previously expected to be October 31, 2024.
The merger, set to create one of the largest airline groups, was approved by the National Company Law Tribunal (NCLT) in June. In March, Singapore’s competition regulator CCCS gave a conditional nod for the proposed deal. In September 2023, the deal received approval from the Competition Commission of India (CCI), subject to certain conditions.
