New Delhi: Tata group-owned Air India has proposed to acquire entire 100% equity stake of Air Asia India.
At present, Tata Sons holds 83.67% stake in Air Asia India. The remaining 16.33% stake is held by AirAsia Investment Ltd (AAIL), group firm of Malaysia’s Air Asia.
While Tata Sons through its wholly-owned subsidiary Talace Pvt Ltd acquired the government-owned Air India along with its low-cost arm Air India Express in January this year, it has been running Air Asia India in joint venture with Malaysia’s Air Asia.
The proposed deal is currently under review of the antitrust watchdog Competition Commission of India (CCI). A notice filed with CCI said that the proposed combination relates to the acquisition of the entire equity share capital of Air Asia (India) Private Limited by Air India Ltd.
“The Proposed Combination is notifiable under Section 5(a)(i)(A) and 5(b)(i)(A) of the Competition Act, 2002,” it said.
As per the summary on proposed combination submitted with the competition watchdog, the transaction will not lead to any change in the competitive landscape or cause any appreciable adverse effect on competition in India, irrespective of the manner in which the relevant markets are defined.