afaqs! news bureau

NCLT approves the merger of Air India and Vistara

With this merger deal, Singapore Airlines will own 25.1 % stake in Air India.

The National Company Law Tribunal (NCLT) has approved the merger of Air India and Vistara, forming one of the largest airline conglomerates globally, as reported by Financial Express. As part of the deal, Singapore Airlines will acquire a 25.1% stake in Air India. Vistara is a joint venture between the Tata Group and Singapore Airlines.

Air India aims to finalise its merger with Vistara by the end of this year. The merger, initially announced in November 2022, has now received approval from the Chandigarh branch of the National Company Law Tribunal (NCLT). The comprehensive order endorses a composite scheme of arrangement that will consolidate Air India, Vistara, and Talace under the Tata Group umbrella.

In its order, the NCLT stated, “A sanction is hereby permitted to the ‘Composite Scheme of Arrangement’ between the petitioner companies and their shareholders under Sections 230 to 232 and Companies Act, 2013 provisions." The order mandates that Air India must complete the merger within nine months.

The merger scheme has received clearances from both the Competition Commission of India (CCI) and the Directorate General of Civil Aviation (DGCA). The two-member NCLT bench noted that all requisite approvals from the creditors and shareholders of both companies have been secured.

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