Singapore Airlines has received foreign direct investment approval for the merger agreement between Vistara-Air India. After getting approval from the government, Singapore Airlines will acquire 25.1 percent stake under the merger agreement. According to media reports, now this agreement is expected to be completed by the end of this year. The proposed merger was announced in November 2022. The airlines that will be formed after this merger will be one of the largest airline groups in the world.
Deal expected to be completed by the end of this year
Air India is owned by the Tata Group and Vistara is owned by both Tata and Singapore Airlines and both have a 51:49 percent stake in it. On Friday, Singapore Airlines said in a regulatory filing to the Singapore Stock Exchange that it has received approval from the Government of India for foreign direct investment (FDI) in the expanded Air India as part of the proposed merger. Singapore Airlines said the proposed merger is expected to be completed by the end of 2024.
Earlier the Vistara-Air India merger agreement was expected to be completed by October 31, 2024. The deal was approved by the National Company Law Tribunal (NCLT) in June. In March, Singapore’s competition regulator CCCS gave conditional approval to the proposed deal. Earlier in September 2023, the deal got approval from the Competition Commission of India (CCI) with certain conditions.
