Vistara-Air India Merger: Singapore Airlines Receives FDI Approval from India

Vistara-Air India

Vistara-Air India: The Indian government has approved Singapore Airlines for foreign investment as part of the plan to merge Vistara and Air India. As the necessary approval is secured, the merger between Singapore Airlines and Air India, in which Singapore Airlines will hold a 25.1 percent stake in Air India by the end of this year.

This plan to merge was declared in November 2022.

Tata Group owns Air India and Tatas and Singapore Airlines own a 51:49 joint venture known as Vistara.

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In a regulatory filing on Friday, Singapore Airlines (SIA) said that the Government of India has given its approval for Foreign Direct Investment (FDI) into the larger Air India as part of the plan to merge.

SIA said, “The FDI approval, together with anti-trust and merger control clearances and approvals, as well as other governmental and regulatory approvals received to-date, represent a significant development towards the completion of the proposed merger.”

The company said that the deal would be completed if both companies followed Indian law. The companies believed this would be done in the next few months.

“At this juncture, completion of the proposed merger is anticipated to occur by the end of 2024.”

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Singapore Airlines said that the parties are discussing extending the long stop date for completing the merger, which was supposed to take place on October 31, 2024.

This will be one of the biggest merges between airline groups, the National Company Law Tribunal (NCLT) approved the merger plan in June.

Singapore's competition regulator CCCS gave the deal a green light in March. The Friday filing said, “SIA will make the necessary announcement(s) upon completion of the proposed merger or in the event that there are other significant developments.”

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