Reliance-Disney merger: The Competition Commission of India (CCI) has approved the merger of Mukesh Ambani’s Reliance Group’s media unit Viacom18 and Star India. CCI has confirmed this on its social media platform X. Earlier, there were reports in the media that CCI had sought detailed answers from the concerned parties, raising anti-competitive concerns regarding the merger deal of $ 8.5 billion or Rs 70,352 crore.
What did the Competition Commission say
CCI wrote on social media platform X- The Commission has approved the proposed combination of Reliance Industries Limited, Viacom18 Media Private Limited, Digital18 Media Limited, Star India Private Limited and Star Television Productions Limited, subject to compliance with voluntary amendments. In May this year, both the companies had sent the merger deal to the Competition Commission for approval. The regulator had sought separate clarifications and additional information from the concerned parties on this.
Merger deal announced in February
In February this year, both the companies announced this merger deal of $ 8.5 billion. Once the deal is implemented, the new entity to be formed will be the largest company in the Indian media and entertainment sector. It will have more than 100 channels broadcast in many languages, two major OTT platforms and a customer base of 75 crores across the country. Star India TV operates broadcasting, films and an OTT platform. On the other hand, Viacom18 is also involved in the business of film production and distribution, apart from broadcasting television channels and operating OTT platforms.
Reliance Industries will have 16.34 percent ownership in the company that will come into existence after the merger, Reliance’s subsidiary Viacom18 will have 46.82 percent and Disney will have 36.84 percent ownership. This means that Reliance will have control of the company. Nita Ambani will take charge of the new company.
Reliance AGM is tomorrow
The merger deal has been approved at a time when the annual general meeting (AGM) of Reliance Industries is about to take place. Let us tell you that the AGM is scheduled on August 29 at 2 pm. Many big announcements are possible in this meeting. Apart from this, brainstorming is also expected on the future plans of the group.
