The proposed merger is pending additional regulatory and foreign direct investment approvals. (representative)
Singapore’s competition regulator said on Tuesday it has approved the merger of Tata Group’s Air India with sister carrier Vistara, a joint venture between Tata and Singapore Airlines, subject to certain conditions.
The Singapore flag carrier has announced plans to merge Vistara and Air India in November 2022 to create a full-service airline with a dominant position in domestic and international markets.
While India’s antitrust agency approved the deal in September last year, the Competition and Consumer Commission of Singapore (CCCS) found certain competition issues regarding the merger.
The regulator said the two parties hold the majority of the market share among airlines operating direct flights on four routes between Singapore and the Indian cities of New Delhi, Mumbai, Chennai and Tiruchirappalli.
To address concerns raised by regulators, the parties proposed maintaining flight capacity at pre-COVID-19 levels, appointing independent auditors to monitor compliance with capacity commitments, and submitting annual and interim reports.
“CCCS considers that the proposed undertakings are sufficient to address the competition concerns arising from the transaction,” the regulator said on Tuesday.
The proposed merger is pending additional regulatory and foreign direct investment approvals.
“Singapore Airlines will continue to work with our partners, Tata Sons, to obtain the remaining approvals from the relevant authorities to complete the merger,” a Singapore Airlines spokesperson said.
Air India did not immediately respond to a Reuters request for comment.
Under the terms of the deal, auto and steel group Tata will hold 74.9% of the combined entity, while Singapore Airlines will hold the remaining 25.1%.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
