Tata Sons and Singapore Airlines (SIA) have agreed to merge Air India and Vistara, according to an official release.
SIA has also agreed to invest Rs 2,059 crore in Air India as part of the transaction. This would give SIA a 25.1 percent stake in an enlarged Air India group with a significant presence in all key market segments.
SIA and Tata aim to complete the merger by March 2024, subject to regulatory approvals.
The Tata group currently owns a 51 percent stake in Vistara, and the remaining 49 percent shareholding is with SIA.
“The proposed merger is subject to and conditional upon the satisfaction and/or waiver of various conditions precedent, including, inter alia, anti-trust and merger control approvals in India, Singapore and other relevant jurisdictions, the approval of the Indian civil aviation authority, as well as other governmental and regulatory approvals. On completion of the Proposed Merger, SIA will hold approximately 25.1 percent of the enlarged AI (being AI including Vistara and Talace),” said the SIA release.
