Billionaire Mukesh Ambani-promoted Reliance Industries has sought approval from honest commerce regulator Competition Commission of India (CCI) for the $8.5-billion merger of Viacom18 and Star India Pvt Ltd (SIPL).
“The proposed transaction aims to combine the entertainment businesses (along with certain other identified businesses) of Viacom18, part of Reliance Industries Ltd (RIL) group and SIPL, wholly-owned by The Walt Disney Company (TWDC).
“As a results of the transaction, SIPL, at the moment a wholly-owned entity of TWDC by way of its subsidiaries, will turn out to be a three way partnership (JV) which can be collectively held by RIL, Viacom18 and present TWDC subsidiaries,” a discover filed with the CCI stated on Friday.
The proposed transaction is not going to trigger any considerable opposed impact on competitors in India, RIL stated within the discover.
However, to facilitate the CCI’s evaluation, they’ve recognized a number of key markets the place horizontal overlaps have been important reminiscent of licensing of audio visible content material rights, distribution of broadcast TV channels, provision of audio visible (AV) content material, and provide of promoting area in India.
SIPL is engaged in a spread of media actions, together with TV broadcasting, movement footage and operation of an OTT platform. It is a wholly-owned entity of U.S.-based The Walt Disney Company (TWDC).
Viacom18 is engaged within the enterprise of broadcasting of tv (TV) channels, operation of an over-the-top (OTT) platform, in India and worldwide. It can be engaged within the enterprise of manufacturing and distribution of movement footage.
In February this 12 months, world media large Walt Disney Co and Reliance Industries introduced signing of binding pacts to merge their media operations in India to create a ₹70,000 crore ($8.5 billion) behemoth.
After the profitable completion of the deal, it could create the largest agency within the Indian media and leisure sector, with over 100 channels in a number of languages, two main OTT platforms and a viewer base of 750 million throughout the nation.
Nita Ambani, spouse of Reliance Industries Chairman Mukesh Ambani, will chair the three way partnership, whereas Uday Shankar would be the Vice Chairperson.
Reliance and its associates will maintain 63.16% stake within the mixed entity, whereas Disney could have the remaining 36.84% shareholding. Reliance has additionally agreed to take a position round ₹11,500 crore into the three way partnership to develop the OTT enterprise.
