Singapore: Singapore Airlines announced on Friday that it has received Foreign Direct Investment (FDI) approval from the Indian government for its proposed merger of Vistara with Air India. This significant move is set to create one of the world’s largest airline groups.
The merger, first announced in November 2022, will see Singapore Airlines acquiring a 25.1 percent stake in Air India. With this FDI clearance, the merger is expected to be finalised by the end of 2024.
In an official regulatory filing to the Singapore Stock Exchange, Singapore Airlines (SIA) confirmed the approval, highlighting it as a major step forward. The airline noted that, along with the FDI clearance, they have also secured anti-trust, merger control, and other regulatory approvals, marking substantial progress towards the merger's completion.
Despite this progress, the finalisation of the merger remains contingent on adherence to applicable Indian laws. Singapore Airlines mentioned that discussions are ongoing to extend the initial completion deadline, previously set for October 31, 2024.
The proposed merger, once completed, will establish one of the largest airline groups globally. It received approval from the National Company Law Tribunal (NCLT) in June 2024. Singapore's competition authority, the Competition and Consumer Commission of Singapore (CCCS), gave its conditional approval for the merger in March, following the approval from India’s Competition Commission (CCI) in September 2023.
Singapore Airlines assured that they will provide further updates upon the completion of the merger or if any significant developments arise. The merger is now anticipated to be completed by the end of 2024.
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