In connection with the proposed merger of Vistara with Air India, which would become one of the biggest airline companies in the world, Singapore Airlines said on Friday that it had gained clearance from the Indian government for the foreign direct investment.
With the approval in place, the merger is anticipated to be finalised by the end of this year, with Singapore Airlines purchasing a 25.1% share in Air India. November of 2022 saw the announcement of the intended merger. The Tata Group owns Air India, and Tatas and Singapore Airlines have a 51:49 joint venture called Vistara.
Singapore Airlines (SIA) said in a regulatory filing on Friday that it has obtained permission from the Indian government to allow Foreign Direct Investment (FDI) into the expanded Air India as a component of the planned merger.
The airline stated in a filing to the Singapore Stock Exchange that “the FDI approval, along with anti-trust 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 National Company Law Tribunal (NCLT) granted approval for the merger in June, resulting in the creation of one of the largest airline groups. Singapore’s Competition Commission (CCCS) approved the proposed acquisition subject to certain conditions in March.
The Competition Commission of India (CCI) approved the agreement in September 2023, subject to a few restrictions. According to the filing on Friday, “SIA will make the necessary announcement(s) upon completion of the proposed merger or in the event that there are other significant developments.”
