CCI green signal to Air Asia to acquire Air India
For a purchase beyond a certain threshold, it is necessary to obtain the approval of the regulatory authority
By: : Nilima Pathak
Update: 2022-06-14 16:45 GMT
CCI green signal to Air Asia to acquire Air India For a purchase beyond a certain threshold, it is necessary to obtain the approval of the regulatory authority The Competition Commission of India (CCI) has endorsed the proposed Air India acquisition of the entire shareholding of AirAsia India. Air Asia is a joint venture between Tata Sons and Air Asia Investment Limited, with the...
CCI green signal to Air Asia to acquire Air India
For a purchase beyond a certain threshold, it is necessary to obtain the approval of the regulatory authority
The Competition Commission of India (CCI) has endorsed the proposed Air India acquisition of the entire shareholding of AirAsia India.
Air Asia is a joint venture between Tata Sons and Air Asia Investment Limited, with the former holding an 83.67 percent stake and the latter owning a 16.33 percent stake.
According to CCI, "The acquisition is of the entire equity share capital of AirAsia (India) Private Limited by Air India Ltd, an indirect wholly-owned subsidiary of Tata Sons Pvt. Ltd."
Tata Sons acquired Air India after placing a winning bid of Rs.18,000 crore for the airline in October 2021.
For an acquisition beyond a certain threshold, the approval of CCI is necessary. The pre-requisite is considered necessary to foster competition while keeping a check on the anti-competitive practices in the marketplace.