The Competition Commission of India(CCI) has approved acquisition of the entire shareholding of AirAsia India which was proposed by Air India.Air Asia India is a joint venture between Tata and Air Asia Investment Limited, with the Tata presently holding 83.67%.
According to a press release issued by the Competition Commission of India(CCI), “the acquisition of the entire equity share capital of AirAsia (India) Private Limited (Air Asia India) by Air India Ltd. (AIL), an indirect wholly-owned subsidiary of TSPL (Tata Sons Pvt Ltd).”
Approval of the Competition Commission of India is necessary for the acquisitions beyond a certain threshold. The pre-requisite is considered necessary to foster competition while keeping a check on anti-competitive practices in the marketplace.
“The proposed combination envisages the acquisition of the entire equity share capital of Air Asia (India) Private Limited by Air India Ltd., an indirect wholly owned subsidiary of TSPL. At present TSPL holds 83.67% of the equity share capital of Air Asia India.”, the Press Release states.
A detailed order by the Competition Commission of India is awaited.