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CCI approves $8.5 billion merger between Reliance and Disney in India
The deal has been approved by the CCI with certain modifications suggested by both parties.
The Competition Commission of India (CCI) on Wednesday approved the $8.5 billion merger between Reliance Industries and Disney's Indian media assets, with certain voluntary modifications.
CCI mentioned in a press statement, "Commission approves the proposed combination involving Reliance Industries (RIL), Viacom18 Media (Viacom18), Digital18 Media, Star India (SIPL) and Star Television Productions (STPL), subject to the compliance of voluntary modifications."
The proposed combination envisages to combine the entertainment businesses (along with certain other identified businesses) of Viacom18, part of RIL group and SIPL, wholly owned by The Walt Disney Company (TWDC). As a result of the transaction, SIPL, currently a wholly owned entity of TWDC through its subsidiaries, shall become a joint venture (JV) which will be jointly held by RIL, Viacom18 and existing TWDC subsidiaries.
Under the agreement, Reliance and its affiliates will hold a 63.16% stake in the combined entity, which will include two streaming services and 120 television channels. Walt Disney will retain the remaining 36.84% stake.
