Categories: Business

CCI approves acquisition of shareholding in Air India by Tata Sons

The Competition Commission of India (CCI) has approved the acquisition of a shareholding in Air India by Talace Private Limited, a wholly-owned subsidiary of Tata Sons. The regulator also approved stake acquisition by Talace in Air India Express and Air India SATS Airport Services along with the acquisition of shares in Air India. Currently, Air India is wholly owned by the government.

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Key Points

  • Air India SATS Airport Services is engaged in providing ground handling services at airports in Delhi, Hyderabad, Bengaluru, Mangaluru and Thiruvananthapuram. It also provides cargo handling services at Bengaluru airport.
  • Air India, along with AIXL, is primarily engaged in the business of providing domestic scheduled air passenger transport service, air cargo transport services and international scheduled air passenger transport service.

Tata’s Bid:

Tata Sons’ subsidiary Talace emerged as the highest bidder for AIR India, under the divestment process. Talace had quoted an enterprise value of Rs 18,000 crore for 100 per cent equity shareholding of the Centre. Out of 18000 crores, Telace will retain Rs 15300 crore while the rest will be paid to the Central government as a cash component.

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Sumit Arora

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