Merger approval: ZEEL offers necessary remedies in accordance with CCI guidelines
CCI has granted approval in Phase 1 after evaluating the official legal and economic submissions made by the company
Zee Entertainment Enterprises Limited (ZEEL) has issued a statement saying it has offered the necessary remedies to the Competition Commission of India (CCI) in accordance with the applicable guidelines.
While the company has not disclosed the remedies it has offered to the competition watchdog, media reports indicate that the network might shut channels in certain genres to ensure that the merged entity doesn't have disproportionate market power.
The CCI today approved the amalgamation scheme between ZEEL, Culver Max Entertainment (formerly Sony Pictures Networks India), and Bangla Entertainment, a subsidiary of Culver Max Entertainment.
The ZEEL statement notes that the CCI has granted approval in Phase 1 after evaluating the official legal and economic submissions made by the company.
"Considering the immense value that the proposed merger will generate for all its stakeholders, the Company has offered the necessary remedies in accordance with the regulator’s guidelines. The detailed order is awaited," the statement added.
The media conglomerate stated that the approval from the CCI is yet another positive step in the overall merger approval process.
In its order pronounced on 7th September 2022, the National Company Law Tribunal (NCLT) had advised the Company to convene and conduct a meeting with its shareholders on 14th October 2022, to seek their approval for the proposed merger.
The Composite Scheme of Arrangement remains subject to applicable regulatory and other approvals, it stated.
