Singapore Airlines gets FDI nod from Indian govt for Vistara-Air India merger | Business News
In a move that will create one of the world’s largest airline groups, Singapore Airlines Friday said that it has received approval from the Indian government for the foreign direct investment as part of the proposed merger of Vistara with Air India.
With the clearance in place, the merger that will see Singapore Airlines acquiring a 25.1 per cent stake in Air India, is expected to be completed by the end of this year. The proposed merger was announced in November 2022.
Air India is owned by Tata Group and Vistara is a 51:49 joint venture between Tatas and Singapore Airlines. In a regulatory filing on Friday, Singapore Airlines (SIA) said it has received approval from the Government of India for Foreign Direct Investment (FDI) into the enlarged Air India as part of the proposed merger.
According to Singapore Airlines, the parties are in discussions to extend the long stop date for the completion of the merger. (File photo)
“The FDI approval, together 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 airline said in the filing to the Singapore Stock Exchange.
The airline added that the completion of the merger continues to be subject to compliance by the parties with applicable Indian laws, which is currently expected to be completed in the next few months. “At this juncture, completion of the proposed merger is anticipated to occur by the end of 2024,” it stated.
According to Singapore Airlines, the parties are in discussions to extend the long stop date for the completion of the merger. Earlier, it was expected to be October 31, 2024.
Singapore’s competition watchdog Competition and Consumer Commission of Singapore had in March granted its conditional approval to the merger. The Competition Commission of India, too, had approved the merger in September 2023.
With inputs from PTI
