Australia’s Foreign Investment Review Board (FIRB) has given Virgin Australia’s proposed takeover of Tigerair Australia the green light.
In a statement to the Australian stock exchange on Friday, Virgin said the all clear from FIRB satisfied one of the conditions for the deal, which was expected to be completed by the end of 2014.
“Virgin Australia Holdings Ltd today welcomed the Foreign Investment Review Board’s statement that it has no objections to the proposed acquisition,” Virgin said.
In October, Virgin said it would purchase the remaining 40 per cent of Tigerair Australia it did not own from Singapore-based Tiger Airways Holdings for A$1 and take full control of the loss-making low-cost carrier.
The deal still requires the approval of Tiger Holdings shareholders.
Virgin chief executive John Borgetti said on Wednesday Tigerair Australia was expected to reach breakeven by the end of 2015/16