"This development is quite significant"
A merger between Mukesh Ambani’s Reliance and Disney’s Indian media assets has been approved by India’s competition regulator.
The deal is said to be worth £6.4 billion.
This approval is contingent on certain voluntary changes proposed by the companies, setting the stage for the creation of a major media conglomerate.
The Competition Commission of India (CCI) announced the approval on social media, stating:
“The commission has approved the merger involving Reliance Industries Ltd, Viacom18 Media Pvt Ltd, Digital18 Media Ltd, Star India Pvt Ltd, and Star Television Productions Ltd, provided the parties adhere to the agreed voluntary modifications.”
Dharmendra Kumar, CCI’s former chairman, said these voluntary changes are likely to speed up the regulatory process.
He said: “This development is quite significant as it will result in a large entertainment group with an extensive viewership.”
He mentioned that the CCI might have been wary of the emergence of a dominant player, especially in the cricket broadcasting sector.
The changes likely sought to prevent any adverse impact on competition and to ensure broader access to cricket coverage throughout India.
This update comes just ahead of Reliance Industries’ 47th annual general meeting.
In February 2024, Reliance’s subsidiary Viacom18 and Disney’s Indian division, Star India, revealed their plans to merge.
This merger will form one of India’s largest television and digital streaming platforms.
The merger will involve combining Viacom18’s media operations with Star India Pvt Ltd through a court-approved process.
Valued at approximately £6.4 billion, Reliance will invest around £1.06 billion into the joint venture to fuel its growth.
Once completed, the merger will rival major players like Sony, Netflix, and Amazon, operating 120 TV channels and two streaming services.
The new board will consist of 10 members – five from Reliance, three from Disney, and two independent directors.
The merger is expected to be finalised by the end of 2024 or early 2025.
Nita Ambani will be the Chairperson of the merged company, while former Walt Disney executive Uday Shankar will serve as Vice Chairperson.
The ownership of the joint venture will be split with Reliance holding 16.34%, Viacom18 at 46.82% and Disney owning 36.84%, with Reliance maintaining control.
On August 28, 2024, Reliance Industries’ shares remained steady at £27.13 on India’s National Stock Exchange.
The CCI’s announcement was made after the trading day ended in Mumbai.
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