Reliance and Disney Offer Channel Sales to Expedite Antitrust Approval for India Merger
Binding Pact Signed for Media Operations Merger
Concessions and Precedents Influence Merger Negotiation
Reliance Industries Limited (RIL) and The Walt Disney Company have proposed the sale of some channels to expedite antitrust approval for their $85 billion merger in India. This move aims to accelerate the completion of the RIL-Walt Disney merger, which involves integrating their respective media operations.
To expedite the process, the parties have offered to sell a portion of their regional Indian language channels. This concession is informed by precedents, such as the approval granted by the Competition Commission of India (CCI) for a similar merger between Zee and Sony in 2022.
Experts anticipate that the CCI may scrutinize the proposed concessions and request further actions, such as the divestiture of Viacom18 and Star India television channels. The merger of these companies would create a significant player in the Indian media landscape, warranting thorough regulatory review.
The binding pact signed by Reliance and Walt Disney outlines the merger of Viacom18's media businesses with Star India Pvt Ltd (SIPL). This merger is expected to have a major impact on the Indian media industry, particularly in the entertainment sector.
According to a confidential submission to the CCI in May, Reliance and Disney maintain that their merger will not hinder competition. They argue that the transaction will benefit consumers by offering access to a wider range of content.
Comments