₹70,350-crore mega-merger between Reliance, Disney gets official nod

The Competition Commission of India (CCI) announced on Wednesday that it approved the $8.5 billion (roughly Rs 70, 350 crore) merger between Reliance Industries and Disney's Indian media assets.

The deal, announced six months ago, has received approval from the CCI with some modifications suggested by both parties.

“Proposed combination involving Reliance Industries Limited, Viacom18 Media Private Limited, Digital18 Media Limited, Star India Private Limited, and Star Television Productions Limited, subject to the compliance of voluntary modifications,” the CCI announced in a post on X.

Changes in deal terms kept secret

The CCI, however, did not reveal any voluntary changes made to the original agreement by the two parties. The voluntary changes proposed by the parties will result in a quick regulatory approval, according to Dharmendra Kumar, former chairperson of the CCI. “This is a very significant development, as it will lead to a large entertainment conglomerate with a large viewership base,” Mr Kumar said.

According to the deal, Reliance and its affiliates will own a 63.16 percent stake in the merged entity, which will include two streaming services and 120 television channels. Walt Disney will retain the remaining 36.84 percent stake.

Deal announced in February

In February, Viacom18, a subsidiary of Reliance Industries (RIL), and Star India, the Indian division of Disney, announced a merger of their businesses to form one of India's largest TV and digital streaming platforms.

According to the agreement, Viacom18's media operations will be combined with Star India Pvt Ltd (SIPL) through a court-approved scheme. The merger, valued at ₹70,350 crore ($8.5 billion) on a post-money basis, will involve RIL investing ₹11,500 crore ($1.4 billion) into the joint venture to support its growth strategy.

                                               (By arrangement with livemint.com)