The Competition Commission of India approved the merger of Reliance with Disney’s entertainment establishments, which is worth more than 70,000 crores (8.5 Billion).
This decision follows some previous cases in India that the CCI deemed to have a detrimental effect on competition, particularly with regard to the merged entity’s holding of broadcasting rights for cricket and television advertising in India.
This merger encompasses companies such as Reliance Industries Limited, Viacom18 Media Private Limited, Digital18 Media Limited, and Star India Private Limited, as well as Star Television Productions Limited of the Walt Disney Company. The result will create the biggest entertainment firm in India, which will own 120 TV channels and two streaming platforms.
In the new setup, Reliance Industries Ltd will have a controlling stake of 63 percent of the new integrated oil firm. 34% control in the new company, while Walt Disney will have a 64% controlling stake in the new company. 84% stake. Star India, as of now a wholly-owned subsidiary of Disney, will become a 50:50 joint venture with Reliance Industries and Viacom18 and existing Disney subsidiaries, as per the CCI’s press note.
However, such approval is subject to the company’s implementation of ‘voluntary undertakings,’ which will soon be accompanied by a detailed order from the CCI.
