'A Significant Milestone...': Vistara to Merge With Air India, Gets FDI Nod from Govt

New Delhi: Singapore Airlines has received Indian government approval for foreign direct investment (FDI) related regulations to its proposed merger with Air India, a move that will form one of the world’s largest airline groups. 

With this clearance, Singapore Airlines is set to acquire a 25.1% stake in Air India, with the merger expected to conclude by the end of this year.

The merger, first announced in November 2022, involves Air India, owned by Tata Group, and Vistara which is a 51:49 joint venture between Tata Group and Singapore Airlines. 

In a regulatory filing on Friday, Singapore Airlines (SIA) confirmed that it has obtained the necessary FDI approval from the Indian government. This, along with anti-trust and merger control clearances and other regulatory approvals received so far, represents a significant step toward finalizing the merger.

The airline noted that the merger's completion still hinges on compliance with applicable Indian laws, with the process anticipated to wrap up by the end of 2024. Discussions are ongoing about extending the merger's completion deadline beyond the initially anticipated October 31, 2024.

The merger has already received approval from the National Company Law Tribunal (NCLT) in June, and in March, Singapore's competition regulator, CCCS, granted conditional approval. The Competition Commission of India (CCI) also approved the deal in September 2023, with certain conditions.

"SIA will announce further details upon the merger's completion or in the event of other significant developments," the filing stated.

Statement From Air India on Merger

“Air India welcomes the Union Cabinet’s approval for the foreign direct investment by Singapore Airlines in Air India. " said Officials from Air India.

Air India termed it as an important milestone in the merger and will lead to a broader transformation of the Air India Group.

With inputs from PTI