The Competition Commission of India (CCI) has accorded its approval to acquisition of shareholding in Air India, Air India Express and Air India SATS Airport Services by Tata Sons’ subsidiary Talace on Monday. The approval from the competition watchdog comes more than two months after the salt-to-software conglomerate won the bidding race on October 8.

The central government had successfully sold its stake in Air India earlier this year after initial failures on account of lack of interest among prospective buyers. Tata Sons had bid ₹18,000 crore for the loss-making national carrier to once again take Air India under its wings, outbidding a consortium led by SpiceJet promoter Ajay Singh. This was higher than the reserve price of ₹12,906 crore set by the government for offloading its stake in the troubled airline and its subsidiaries.

The Centre had signed the share purchase agreement with Tata Sons for handing over its stake in Air India on October 25. More than a later, civil aviation minister Jyotiraditya Scindia had said that the transfer of Air India stake to Tata Sons would be completed within one to 1.5 months.

Under the deal, Talace would acquire 100% equity share capital and sole control over the management and operations of Air India and Air India Express (AIXL), and 50% equity share capital and joint control over the management and operations of Air India SATS Airport Services (AISATS).

Talace is a newly established wholly-owned subsidiary of Tata Sons, created for the acquisition of Air India. Before the deal, it was not involved in any business activity. For the purpose of this deal, Tata Sons had been listed as an investment holding company, which is registered as a core investment company with the Reserve Bank of India.

Tata Sons has prior experience in the aviation sector, as it was JRD Tata who founded Air India back in 1930, before it was nationalised in 1953.

As of now, even before acquiring Air India, Tata Sons has been present in the segment through its joint venture companies Vistara and Air Asia India. Tata Sons also has indirect shareholding and control over Taj SATS Air Catering Limited and Taj Madras Flight Kitchen Private Limited, which provide in-flight catering services in India.

As of August 31, the total debt of Air India stood at ₹61,562 crore. Of this, Tata Sons will take over ₹15,300 crore, while ₹46,262 crore will be held by Air India Asset Holdings Ltd, a special purpose vehicle created to manage non-core assets, land and debt of Air India that Tata will not acquire.

Tata Sons will pay the government around ₹2,700 crore for taking over Air India and its subsidiaries and take over the rest of the consideration as debt.

Follow us on Facebook, Twitter, YouTube & Instagram to never miss an update from Fortune India. To buy a copy, visit Amazon.