TTT NEWS NETWORK
NEW DELHI, 3 SEPTEMBER 2023:
The Competition of Commission of India (CCI) has approved 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.
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.
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 27 January 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.
TSAL is a joint venture between TSPL and SIA, with TSPL and SIA holding 51% and 49% 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).
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 of voluntary commitments offered by the parties.
Advertisement:
Add Comment