Air India-Vistara Merger: Government Approves $276 Million Investment by Singapore Airlines
The Indian government has cleared the final hurdle for the merger of national carrier Air India Ltd. with Vistara, a smaller rival airline. This approval includes a significant investment of S$360 million ($276 million) by Singapore Airlines Ltd. into the newly combined airline.
The Foreign Direct Investment (FDI) approval paves the way for Singapore Airlines to acquire a 25.1 percent stake in Air India as part of the merger. The deal, initially agreed upon in November 2022, is now on track to be completed by the end of 2024.
Singapore Airlines, in its regulatory filing on Friday, confirmed that the FDI approval, along with anti-trust and other necessary regulatory clearances, marks a major step forward in the merger process. The combined airline entity will create one of the largest airline groups in the region.
Initially, the merger was expected to be finalized by October 31, 2024, but the parties involved are now considering an extension of the deadline to ensure a smooth completion by the end of the year.
The merger is a joint venture between Tata Group, which owns Air India, and Singapore Airlines, which holds a 39% stake in Vistara. READ MORE……..
