CCI approves Vistara-Air India merger deal
Sep 01, 2023
New Delhi [India], September 1 : The Competition of Commission of India (CCI) has approved the merger of Tata SIA Airlines (Vistara) into Air India, and the acquisition of certain shareholding by Singapore Airlines in Air India subject to compliance with voluntary commitments offered by the parties.
The proposed combination envisages (a) the merger of Tata SIA Airlines Limited (TSAL/Vistara) into Air India Limited (AIL/Air India), with AIL being the surviving entity (Merged Entity) and (b) in consideration of the merger, the acquisition of shares in the Merged Entity by Singapore Airlines Limited (SIA) and Tata Sons Private Limited (TSPL) and (c) acquisition of additional shares in the Merged Entity by SIA pursuant to a preferential allotment, Competition Commission of India said.
The CCI further stated that TSPL is an investment holding company, which is registered as a core investment company with the Reserve Bank of India and classified as a “Systemically Important Non-Deposit Taking Core Investment Company. TSPL (through Talace Private Limited) completed the acquisition of AIL on January 27, 2022.
"AIL (including its wholly owned subsidiaries Air India Express Ltd. and AIX Connect Private Limited), is engaged in the business of providing (a) domestic scheduled air passenger transport service, (b) international scheduled air passenger transport service (AIX Connect Private Limited does not provide this service), (c) air cargo transport services; and (d) charter flight services," CCI said.
Moreover, CCI mentioned that TSAL is a joint venture between TSPL and SIA, with TSPL and SIA holding 51 per cent and 49 per cent of the total shareholding, respectively. TSAL operates under the brand name “Vistara”.
TSAL is engaged in the business of providing the following services: (a) domestic scheduled air passenger transport service, (b) international scheduled air passenger transport service, (c) air cargo transport services; and (d) charter flight services (domestic and international), it added.
It said that "SIA is the parent entity for the SIA group of companies (SIA Group). SIA is engaged in the business of passenger and cargo air transportation, and the principal activities of the SIA Group consist of passenger and cargo air transportation, engineering services, training of pilots, air charters, tour activities, sale of merchandise and related activities."
The CCI approved the proposed combination subject to compliance with voluntary commitments offered by the parties.
