In a boost to the Air India-Vistara merger, Singapore Airlines (SIA) on Friday said that it has received approval from the Government of India for foreign direct investment (FDI) in a deal with the Tatas, the airline said in an exchange filing.
Singapore’s flagship carrier, which has a 49 per cent stake in Vistara, had announced the plan to merge the Indian airline and Tata-owned Air India in November 2022. Tatas own 51 per cent in Vistara.
Upon completion of the merger, SIA is expected to hold approximately 25.1 per cent of the enlarged Air India.
The FDI approval takes the Tata-SIA Joint Venture one step closer to their aim of creating a dominant full-service airline in the domestic and international markets.
“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,” SIA said in a statement.
While the merger is still subject to compliance with Indian laws, it is currently expected to be finalized by the end of 2024.
The parties involved are in discussions to extend the Long Stop Date from the previously indicated deadline of October 31, 2024, to accommodate this revised timeline.
The National Company Law Tribunal (NCLT) approved the merger in June this year after Singapore’s competition regulator CCCS gave a conditional nod for the proposed deal in March.
In September 2023, the deal received approval from the Competition Commission of India (CCI), subject to certain conditions.
