Friday, August 30, 2024 Air India and Vistara are set to merge, soaring to new heights, as India and Singapore Airlines secure vital FDI approval, marking a historic milestone. The Indian government has approved the foreign direct investment (FDI) necessary for the merger between Air India and Vistara, as confirmed by Singapore Airlines on Friday. This merger, set to create one of the largest airline groups globally, is on track to conclude by the end of the year.
The merger, first announced in November 2022, involves Tata-owned Air India and Vistara, a joint venture where Tata Group holds a 51% stake and Singapore Airlines holds 49%. Singapore Airlines will acquire a 25.1% stake in the merged entity, reflecting its significant involvement in the deal.
In its recent regulatory filing, Singapore Airlines stated that the Government of India has granted FDI approval for the expansion of Air India, marking a critical step toward finalizing the merger. However, the completion is still contingent upon adherence to relevant Indian legal requirements, with the merger expected to be finalized within the coming months. Discussions are currently underway to extend the merger’s long stop date, initially set for October 31, 2024, to ensure all regulatory and legal requirements are met.
The merger received approval from the National Company Law Tribunal (NCLT) in June and had earlier gained conditional clearance from Singapore’s Competition and Consumer Commission (CCCS) in March. Addi.