Reliance Industries Seeks CCI Approval For Viacom18-Star India Merger
Reliance and its affiliates will hold 63.16% stake in the combined entity, while Disney will have the remaining 36.84% shareholding.
Billionaire Mukesh Ambani-promoted Reliance Industries Ltd. has sought the Competition Commission of India's approval for the $8.5-billion merger of Viacom18 and Star India Pvt. Post the merger, Star India will become a joint venture, held by RIL, Viacom18 and existing TWDC subsidiaries, according to a notice filed with the CCI on Friday.
"The proposed transaction aims to combine the entertainment businesses (along with certain other identified businesses) of Viacom18, part of Reliance Industries Ltd. group and SIPL, wholly-owned by The Walt Disney Company."
Reliance and its affiliates will hold 63.16% stake in the combined entity, while Disney will have the remaining 36.84% shareholding. Reliance has also agreed to invest around Rs 11,500 crore into the joint venture to grow the OTT business.
The proposed transaction will not cause any appreciable adverse effect on competition in India, RIL said in the notice.
However, to facilitate CCI's assessment, they have identified several key markets, where horizontal overlaps were significant, such as licencing of audio visual content rights, distribution of broadcast TV channels, provision of audio visual content, and supply of advertising space in India.
SIPL is engaged in a range of media activities, including TV broadcasting, motion pictures and operation of an OTT platform.
Viacom18 is engaged in the business of broadcasting of television channels, operation of an over-the-top platform, in India and worldwide. It is also engaged in the business of production and distribution of motion pictures.
In February this year, global media giant Walt Disney Co. and Reliance Industries announced signing of binding pacts to merge their media operations in India, to create a Rs 70,000 crore behemoth.
After the successful completion of the deal, it would create the biggest firm in the Indian media and entertainment sector, with over 100 channels in several languages, two leading OTT platforms and a viewer base of 750 million across the country.
Nita Ambani, wife of Reliance Industries Chairman Mukesh Ambani, will chair the joint venture, while Uday Shankar will be the vice chairperson.
(With inputs from PTI)
