Reliance-Disney merger may take longer pending CCI inquiry: Report

The two parties have reportedly filled Form 2, which notifies CCI about the merger and its impact on competition

by e4m Staff
Published: Jun 15, 2024 11:09 AM | 2 min read

The merger between Mukesh Ambani-owned Reliance Industry Limited’s Viacom18 and Walt Disney’s Star India may take some more time despite getting greenlit by the National Company Law Tribunal last month (NCLT), according to a news report.

The merger may take longer since the Competition Commission of India (CCI) will conduct a detailed inquiry into its likely impact, said the report. The two parties have filled Form 2, which will be followed by a detailed study.

Form 2 refers to a notification form to inform the CCI about a proposed merger, acquisition or amalgamation that meets certain thresholds defined in the Competition Act, 2002. It is usually submitted in cases of mergers that may significantly impact competition within the given field.

The CCI conducts an inquiry basis the form to understand whether the merger will cause any appreciable impact on the competition.

On February 28, 2024, Star India entered into a binding definitive agreement with RIL and Viacom 18 Media Private Limited, which is majority owned and controlled by RIL, to form a joint venture that will combine the businesses of Viacom18 and Star India consisting of entertainment and sports pay TV and free-to-air networks, DTC services, library content and certain production businesses (the Star India Transaction).

The transaction values the JV at ₹70,352 crore (US$ 8.5 billion) on a post-money basis, excluding synergies. Post completion of the above steps, the JV will be controlled by RIL and owned 16.34% by RIL, 46.82% by Viacom18 and 36.84% by Disney. Disney may also contribute certain additional media assets to the JV, subject to regulatory and third-party approvals.