"CCI approves the merger of Tata SIA Airlines into Air India, and acquisition of certain shareholding by Singapore Airlines (SIA) in Air India subject to compliance of voluntary commitments offered by the parties," the anti-trust agency posted on X, formerly Twitter.
C-2023/04/1022 CCI approves the merger of Tata SIA Airlines into Air India, and acquisition of certain shareholding by Singapore Airlines in Air India subject to compliance of voluntary commitments offered by the parties.#CCIMerger #Mergers pic.twitter.com/QihGf4xxus
— CCI (@CCI_India) September 1, 2023
The approval, which came after some difficulty, is a major headway for the Tata Group in its efforts to integrate and streamline its aviation business.
In June, the CCI asked Tata Group to show cause why the proposed merger should not be investigated over concerns about fair competition in the aviation sector in India.
Vistara and Air India are two full-service airlines, owned by the Tata Group. Singapore Airlines owns a 49% stake in Vistara.
After the merger, Singapore Airlines will pump in Rs 2,059 crore to own a 25.1 percent stake in the expanded share capital of Air India.
Air India and SIA had filed a merger application with CCI stating that the proposed merger would not impact the competitive landscape or adversely affect competition in India and hoped that the merger could be executed by March 2024.