Tata Owned Air India Proposes To Buy AirAsia India & Merge Into A Single Airline
Four months after welcoming back Air India to its kitty, the Tata Sons' owned company has proposed to buy low cost airline AirAsiaIndia and merge into a single airline, according to an application submitted to Competition Commission of India (CCI).
Four months after welcoming back Air India, Tata Group has put forth another big deal.
Tata-owned Air India has proposed to buy the entire equity share capital of low cost carrier AirAsia India, as per a report in Reuters. Tata Sons already has an 83.67% stake in AirAsia India. And now, Tata Sons¡¯ Air India has proposed to buy AirAsia India and merge into a single airline, according to an application submitted to India's competition commission.
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The move will see Malaysia's AirAsia exiting the airline venture nine years after it entered India with high hopes.
AirAsia owns 16.33% of the India unit and, according to the shareholders' agreement between the company and Tata Sons, the latter can acquire the former's stake directly or through an affiliate.
Since Air India is now an affiliate of Tata group, the purchase of AirAsia's stake has been routed through it, sources said as per the TOI report.
The application to Competition Commission of India (CCI) is the first move by Tata to integrate its airline businesses, which also include Vistara, and AirAsia India, which it operates with Malaysia's AirAsia.
"The proposed combination will not lead to any change in the competitive landscape or cause any appreciable adverse effect on competition in India," according to the application with the Competition Commission of India (CCI), as per Reuters.
Other Companies In Tata Group
If this acquisition of AirAsia India goes through for Tata Sons, the low cost airlines will join a long and diverse list of companies under Tata group.
The list includes Tata Motors, Jaguar Land Rover, Tata AutoComp systems, Tata Consultancy Services (TCS), Tata Elxsi, Tata Digital, Tata Steel, Tata Advanced Systems Ltd (TASL),Tata Power, Tata Housing, Tata Consulting Engineers, Tata Projects,Tata Realty & Infrastructure Limited, Tata Chemicals, Tata Consumer Products, Titan Company, Voltas, Trent and Infiniti Retail, Tata Communications, Tata Play, Tata Teleservices, Tata Capital, Tata AIA Life, Tata AIG, Tata Asset Management Company, Tata Industries, Tata International and Tata Investment Corporation.
Besides all these, there are many foreign brands too, that are owned by Tata Group, including Starbucks India, Tetley, Corus Group, Daewoo Commercial Vehicles, General Chemical Industrial Products, Tyco Global Network etc.
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