30 August,2024 10:23 AM IST | Singapore | mid-day online correspondent
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Singapore Airlines on Friday said that it has received the nod from the Indian Government for foreign direct investment (FDI) as part of the proposed merger of Vistara with Air India. The deal is likely to create one of the world's largest airline groups, reported PTI.
With the clearance in place, the merger will see Singapore Airlines acquiring a 25.1 per cent stake in Air India. Singapore Airlines stated that the completion of the merger continues to be subject to compliance by the parties with applicable Indian laws. The proposed merger, which was announced in November 2022, is expected to be completed by the end of this year.
"At this juncture, completion of the proposed merger is anticipated to occur by the end of 2024," the airline stated.
Air India is owned by Tata Group while Vistara is a 51:49 joint venture between the Tatas and Singapore Airlines.
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In a regulatory filing on Friday, Singapore Airlines confirmed the Indian Government's approval for FDI into the enlarged Air India as part of its proposed merger with Vistara.
"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 airline said in the filing to the Singapore Stock Exchange.
According to Singapore Airlines, the parties are in discussions to extend the long stop date for the completion of the merger. Earlier, it was expected to be October 31.
The merger, which will create one of the biggest airline groups, was approved by the National Company Law Tribunal (NCLT) in June.
In March, Singapore's competition regulator CCCS gave a conditional nod for the proposed deal.
In September 2023, the deal received approval from the Competition Commission of India (CCI), subject to certain conditions.
"Singapore Airlines will make the necessary announcement(s) upon completion of the proposed merger or in the event that there are other significant developments," the airline said on Friday.
(With PTI inputs)
