Air India-Vistara Merger! CCI approves the deal subject to certain conditions

financialexpress.com:

On Friday, the Competition Commission granted its approval for the proposed merger between Air India and Vistara, subject to specific conditions. This development represents a significant stride for the Tata Group as it solidifies its position in the aviation industry.

In a statement posted on the X platform, the Competition Commission of India (CCI) announced its approval, stating, “CCI has given its nod to the merger of Tata SIA Airlines into Air India and the acquisition of certain shareholdings in Air India by Singapore Airlines, contingent upon compliance with the voluntary commitments offered by the involved parties.”

Both Vistara and Air India are full-service carriers affiliated with the Tata Group, with Singapore Airlines holding a 49 per cent stake in Vistara.

In November of the previous year, the Tata Group disclosed plans to merge Vistara with Air India, in a transaction that would also involve Singapore Airlines acquiring a 25.1 per cent stake in Air India. This merger stands as a significant consolidation move within India’s rapidly expanding aviation sector.

The request for approval of this merger was submitted to CCI in April of this year. The parties involved in this combination include Tata Sons Pvt Ltd (TSPL), Air India Ltd, Tata SIA Airlines Ltd (TSAL), and Singapore Airlines Ltd.

Upon completion of the deal, Air India will become the country’s largest international carrier and the second-largest domestic carrier.