Singapore Airlines (SIA) announced on Friday that it has received approval from the Indian government for foreign direct investment (FDI) as part of the proposed merger with Air India. This merger, set to create one of the world’s largest airline groups, will see Singapore Airlines acquire a 25.1% stake in Air India.
"The FDI approval, together with anti-trust and merger control clearances and approvals, as well as other governmental and regulatory approvals received to-date, represent a significant development towards the completion of the proposed merger," the airline said in the filing to the Singapore Stock Exchange.
"At this juncture, completion of the proposed merger is anticipated to occur by the end of 2024," it added.
"Air India welcomes the Union Cabinet’s approval for the foreign direct investment by Singapore Airlines in Air India. This is an important milestone that facilitates the merger process between Vistara and Air India, and the broader transformation of the Air India Group," said Air India Spokesperson.
Merger timeline and regulatory clearances
The merger, first announced in November 2022, is anticipated to be completed by the end of 2024. Singapore Airlines noted that the completion of the deal is contingent on compliance with Indian laws and other regulatory approvals. The National Company Law Tribunal (NCLT) approved the merger in June, and Singapore’s competition regulator CCCS granted conditional approval in March. The Competition Commission of India (CCI) also approved the deal in September 2023.
"SIA will make the necessary announcement(s) upon completion of the proposed merger or in the event that there are other significant developments," the filing said on Friday.
Next steps and possible extensions
Singapore Airlines mentioned that discussions are ongoing to extend the merger's completion deadline, which was originally set for October 31, 2024. The airline will provide updates upon the merger’s completion or any significant developments.
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