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Singapore Airlines on Friday (August 30, 2024) said it has received approval from the Indian government for foreign direct investment as part of Vistara’s proposed merger with Air India, a deal that will create one of the world’s largest airline groups. | Photo credit: Reuters
Singapore Airlines on Friday (August 30, 2024) said it has received approval from the Indian government for foreign direct investment (FDI) as part of Vistara’s proposed merger with Air India, a deal that will create one of the world’s largest airline groups.
Subject to approval, the merger is expected to be completed by the end of this year, with Singapore Airlines acquiring a 25.1% stake in Air India.
The proposed merger was announced in November 2022.
Air India is owned by Tata Group and Vistara is a joint venture between Tata and Singapore Airlines in 51:49 ratio.
In a regulatory filing on Friday (August 30, 2024), Singapore Airlines (SIA) said it has received approval from the Indian government for foreign direct investment (FDI) in the expanded Air India as part of the proposed merger.
“The FDI approval, as well as anti-trust and merger control clearances and approvals, as well as other governmental and regulatory approvals received so far, represent a significant development towards the completion of the proposed merger,” the airline said in a filing to the Singapore Stock Exchange.
The airline also said that completion of the merger is subject to compliance with applicable Indian laws by the respective parties, which is expected to be completed in the next few months.
“At this time, the proposed merger is expected to be completed by the end of 2024,” it said.
According to Singapore Airlines, the two parties are in talks to extend the long-term moratorium date to complete the merger. Previously, it was expected to be October 31, 2024.
The merger, which was approved by the National Company Law Tribunal (NCLT) in June, will result in the creation of one of the largest airline groups.
In March, Singapore’s competition regulator CCCS had given conditional approval to the proposed deal.
Earlier in September 2023, the deal had received approval from the Competition Commission of India (CCI), subject to certain conditions.
“SIA will make necessary announcements upon completion of the proposed merger or when other significant developments occur,” the filing said on Friday (August 30, 2024).
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