The National Company Law Tribunal (NCLT) gave its approval for the merger of Air India and Vistara on Thursday, setting the stage for the formation of one of the largest airline groups globally.
Following the merger, initially announced in November 2022, Singapore Airlines will hold a 25.1 per cent stake in Air India, as per a report by PTI. Vistara is currently a joint venture between Singapore Airlines and the Tata Group.
In a detailed 31-page order, the NCLT bench in Chandigarh gave its approval for the "composite scheme of arrangement" encompassing Talace, Air India, and Vistara, all entities under the Tata Group umbrella.
The Tata Group airline is expecting to finalise the merger by the year's end. The two-member bench noted that the scheme had already garnered requisite nods from the shareholders and creditors of both airlines.
The airlines have also secured all the necessary approvals from regulatory bodies such as the Competition Commission of India (CCI) and the Directorate General of Civil Aviation (DGCA). As per the report, there have been "no substantial objections" raised by the Income Tax department or any other stakeholders.
"Accordingly, a sanction is hereby granted to the 'Composite Scheme of Arrangement' amongst the petitioner companies and their respective shareholders under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013," the NCLT order said.
The order also added that the companies must obtain Foreign Direct Investment (FDI) approval from Singapore Airlines (a shareholder of Vistara) and security clearances from the DGCA/MOCA within nine months from the date of the order.
"The Transferor Companies (Vistara) shall stand dissolved without undergoing the process of winding up on completion of the merger and associated formalities after receipt of necessary approvals including FDI approval/security clearances as required under relevant CARs (Civil Aviation Regulations) issued by DGCA/MCA/any other authority within a period of nine months from the date of this order," it said.
