CCI Approves Air India Stake Acquisition By Tata Sons
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22 December 2021 Current Affairs:The Competition Commission of India (CCI) approved Talace, a wholly-owned subsidiary of Tata Sons, acquiring Air India Stakes on 20 December.
- Air India is currently entirely owned by the Indian government.
- Air India and AIXL are principally delivering domestic scheduled air passenger transportation, air cargo transport, and international scheduled air passenger transport.
- Air India SATS Airport Services provides ground handling services at Delhi, Hyderabad, Bengaluru, Mangaluru, and Thiruvananthapuram. Bengaluru Airport also provides cargo handling services.
- In October 2021, the Tata Group signed a share purchase deal with the government of India to buy the government’s stake in national carriers Air India, Air India Express, and AISATS. Following that, Tata Group received a Letter of Intent (LoI).
- The Tata Group had to meet the agreement’s pre-conditions following the SPA before acquiring Air India.
- Under the sale process, Tata Sons’ subsidiary Talace emerged as the highest bidder for AIR India.
- The Competition Commission of India (CCI) is the country’s top competition regulator. It is a government-run agency that reports to the Ministry of Corporate Affairs.
- It is in charge of enforcing the Competition Act of 2002 to promote competition and prohibit the illegal activity.
- CCI also investigates incidents to see if they hurt competition.