Green Light for Vistara-Air India Merger Paves Way for Global Airline Giant
Singapore Airlines (SIA) announced on Friday that it has received Foreign Direct Investment (FDI) approval from the Indian government, paving the way for its proposed merger of Vistara with Air India. The merger, which will result in Singapore Airlines acquiring a 25.1% stake in Air India, is expected to be finalized by the end of 2024. This marks a significant step in the creation of one of the world’s largest airline groups.
Vistara is currently a joint venture between Tata Group, which owns Air India, and Singapore Airlines, with a 51:49 ownership ratio. The merger was initially announced in November 2022. Singapore Airlines confirmed the Indian government’s approval in a regulatory filing to the Singapore Stock Exchange, highlighting that the necessary anti-trust and merger control clearances, along with other governmental and regulatory approvals, have also been secured.
While the merger was originally expected to be completed by October 31, 2024, discussions are ongoing to extend the long stop date. The airline expects the merger to be finalized by the end of the year, subject to compliance with Indian laws.
Earlier this year, the Competition Commission of India (CCI) approved the merger, following conditional approval granted by Singapore’s Competition and Consumer Commission in March. This clearance further aligns both companies with the regulatory requirements needed to finalize the transaction.
(With inputs from agency)
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