Reliance-Disney India Merger Secures CCI Approval, Paving Way For Rs 70,350 Crore Deal

Reliance-Disney India Merger: The merger, valued at Rs 70,350 crore, is set to form one of the country's largest media entities, encompassing TV channels and digital streaming platforms

Reliance-Disney India Merger: CCI, India's competition watchdog, has approved the proposed merger of Reliance Industries Ltd's (RIL's) media operations with Disney's Indian unit, Star India Pvt Ltd. The merger, valued at Rs 70,350 crore, is set to form one of the country's largest media entities, encompassing TV channels and digital streaming platforms.

The commission announced its decision through a post on the social media platform X (formerly Twitter), stating, "The Commission approves the proposed combination involving Reliance Industries Ltd, Viacom18 Media Pvt Ltd, Digital18 Media Ltd, Star India Pvt Ltd, and Star Television Productions Ltd, subject to the compliance of voluntary modifications."

Dharmendra Kumar, former chairperson of the CCI, commented on the swift regulatory approval, attributing it to the voluntary modifications pledged by the merging parties. He highlighted the significance of this merger, highlighting its potential to create a formidable entertainment conglomerate with a vast viewership base.

The announcement comes just a day before Reliance Industries' 47th annual general meeting (AGM), underscoring the importance of this development for the company’s future strategy.

The merger plan, first revealed in February, involves the integration of Viacom18's media operations with Star India Pvt Ltd (SIPL) through a court-approved scheme. As part of the agreement, RIL will inject Rs 11,500 crore into the venture, which has been valued at Rs 70,350 crore on a post-money basis. The newly formed entity will compete with industry giants like Sony, Netflix, and Amazon, boasting 120 TV channels and two streaming services.

The joint venture's board will consist of 10 members, with Reliance Industries nominating five, Disney three, and two independent directors. Nita Ambani is set to become the Chairperson of the merged entity, with former Walt Disney executive Uday Shankar joining as Vice Chairperson.

The merger is expected to be completed between the last quarter of 2024 and the first quarter of 2025. Upon completion, the ownership structure will see RIL holding 16.34 per cent, Viacom18 46.82 per cent, and Disney 36.84 per cent, with RIL retaining control.

Following the announcement, RIL's shares remained largely unchanged, closing at Rs 2,999 on the NSE. The CCI's decision was made public after trading hours in Mumbai, likely leaving the impact on share prices to unfold in the coming sessions.