New Delhi: Competition Commission of India (CCI) said on Friday it has approved the merger of Tata SIA Airlines, which operates Vistara with the Tata group’s Air India, subject to the parties complying with certain voluntary commitments.
The competition regulator said that the merger also involved Singapore Airlines and Tata Sons Pvt. Ltd acquiring some shares in the merged entity Air India subject to compliance of voluntary commitments offered by the parties. The transaction also involves acquisition of additional shares in the merged entity by Singapore Airlines in a preferential allotment.
Tata Sons had acquired Air India in January 2022 through its subsidiary Talace Pvt. Ltd.
The Tata group had announced last November that as part of the merger, SIA will invest ₹2,059 crore in Air India. Post the consolidation, SIA will hold 25.1% shareholding in Air India. The deal is to be completed by March 2024.
Tata Sons chairman N. Chandrasekaran then said the merger is an important milestone in the group’s “journey to make Air India a truly world-class airline”. Air India is focusing on growing both its network and fleet, revamping its customer proposition, enhancing safety, reliability, and on-time performance, he added.
CCI described Tata Sons as an investment holding company registered as a core investment company with the RBI and classified as a “systemically important non-deposit taking core investment company”. Air India and its wholly owned arms Air India Express Ltd and AIX Connect Pvt. Ltd together offer domestic scheduled air passenger transport service, international scheduled air passenger transport service, air cargo transport service and charter flight services.
TSAL is a joint venture of Tata Group and the Singapore Airlines with the former holding 51% and the latter 49%.
“The CCI approved the proposed combination subject to compliance of voluntary commitments offered by the parties,” CCI said.
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Updated: 03 Sep 2023, 10:55 AM IST