CCI Approved $8.5 billion Merger of Reliance and Disney India

On August 28, 2024, the Competition Commission of India (CCI) granted its approval to the proposed merger worth ₹70,350 crore ($8.5 billion) between Reliance Industries Limited (RIL), Viacom18 Media Private Limited (Viacom18), Digital18 Media Limited, Star India Private Limited (SIPL), and Star Television Productions Limited (STPL), subject to the fulfilment of certain voluntary conditions.

This strategic combination aims to unite the entertainment businesses (along with other specified areas) of Viacom18, a member of the RIL group, and SIPL, a wholly owned subsidiary of The Walt Disney Company (TWDC). Post-merger, SIPL will transition from a fully owned entity of TWDC to a joint venture (JV) shared by RIL, Viacom18, and existing TWDC subsidiaries.

RIL, a diversified conglomerate, operates across various sectors, including oil and gas exploration and production, petroleum refining and marketing, petrochemicals, chemicals, organised retail, media and entertainment, and telecommunications. Viacom18, a prominent player in the Indian media landscape, engages in television broadcasting, OTT platform operations, advertising, merchandise licensing, and live event management. SIPL, a subsidiary of TWDC, offers a comprehensive range of media services, including TV broadcasting, content production, OTT platform operations, and advertising. STPL, a British Virgin Islands-based company, is indirectly owned by TWDC.

The CCI’s approval for the proposed combination, contingent upon the implementation of voluntary modifications, signals a significant step forward in the consolidation of the Indian media and entertainment industry. This merger is expected to create a powerful entity with a broader reach, enhanced content offerings, and greater market influence.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.