Singapore's anti-trust watchdog okays Vistara-Air India merger
Singapore's anti-trust regulator announced its approval of the merger between Air India, owned by Tata Group, and Vistara, a joint venture between Tata and Singapore Airlines, subject to certain conditions, Reuters reported.
This move comes after Singapore Airlines revealed its intention to merge Vistara and Air India in November 2022, aiming to establish a prominent full-service airline in both domestic and international aviation sectors.
Although India's antitrust body had given its nod to the deal in September last year, the Competition and Consumer Commission of Singapore (CCCS) had raised specific competition-related issues regarding the merger.
The watchdog highlighted that the involved parties held a significant portion of the market share on four routes of concern between Singapore and Indian cities, namely New Delhi, Mumbai, Chennai, and Tiruchirapalli, where direct flights operate, according to the Reuters report.
In response to the concerns raised by the watchdog, the involved parties have put forward a proposal. This proposal entails maintaining the capacity on the specified flights at levels that existed before the COVID-19 pandemic, appointing independent auditors to oversee adherence to capacity commitments, and submitting both annual and interim reports.
"CCCS considers the proposed commitments sufficient to address the competition concerns arising from the transactions," the watchdog said on Tuesday, the report said.
As per the terms outlined in the deal, Tata, a steel-to-software conglomerate, would possess 74.9% ownership of the merged entity, while Singapore Airlines would retain the remaining 25.1% stake.
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