The Indian government has approved Singapore Airlines (SQ, Singapore Changi) taking a 25.1% stake in an enlarged Air India (AI, Delhi International) following that airline absorbing and merging with Vistara (UK, Delhi International). Singapore Airlines announced the approval via an August 30 regulatory filing.
Under the terms of the deal, Singapore Airlines will exchange its 49% shareholding in Vistara for a smaller stake in the much larger Air India. Both Vistara and Air India are majority-owned by Tata Sons.
"The foreign direct investment approval, together with antitrust 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 filing reads.
"At this juncture, completion of the proposed merger is anticipated to occur by the end of 2024. Accordingly, the parties are in discussions to extend the long stop date (previously indicated as 31 October 2024 for completion of the proposed merger) to accommodate the latest expected transaction completion date."
Competition authorities in India and Singapore have already approved the merger, which will allow Singapore Airlines more access to the high-growth Indian aviation market. Vistara is expected to keep flying under its identity until November 11, after which unified operations will start under the Air India brand.
