Competition Commission Of India Approves Vistara And Air India Merger

The CCI had issued a show cause notice to Air India back in June, seeking clarification on why the proposed merger with Vistara should not be subject to investigation.

Representative Image | Vistara and Air India, both full-service airlines under the Tata Group, have a significant connection.

Source : Getty

New Delhi: Competition Commission on Friday approved the proposed merger of Air India and Vistara subject to certain conditions.

The development is a major step forward for Tata Group in consolidating its aviation business.

In a post on platform X, the Competition Commission of India (CCI) on Friday said it has approved the merger.

"CCI approves the merger of Tata SIA Airlines into Air India, and acquisition of certain shareholding by Singapore Airlines in Air India subject to compliance of voluntary commitments offered by the parties," it said.

C-2023/04/1022 CCI approves the merger of Tata SIA Airlines into Air India, and acquisition of certain shareholding by Singapore Airlines in Air India subject to compliance of voluntary commitments offered by the parties.#CCIMerger #Mergers pic.twitter.com/QihGf4xxus

— CCI (@CCI_India) September 1, 2023

Vistara and Air India are full-service carriers that are part of the Tata Group, and Singapore Airlines holds a 49 per cent stake in Vistara.

In November last year, Tata Group announced the merger of Vistara with Air India under a deal wherein Singapore Airlines will also acquire a 25.1 per cent stake in Air India. The deal would mark a major consolidation in India’s fast-growing aviation space.

The approval for the proposed combination was sought from CCI in April this year. The CCI in June asked for more details with respect to the proposed merger.

The parties to the combination are Tata Sons Pvt Ltd (TSPL), Air India Ltd, Tata SIA Airlines Ltd (TSAL) and Singapore Airlines Ltd.

Once the merger concludes, Singapore Airlines will be allotted additional shares in the merged entity through a preferential allotment. The deal will make Air India the country’s largest international carrier and second-largest domestic carrier.

Air India Express and AIX Connect (earlier known as AirAsia India) are in the process of being merged.

(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)

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