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The National Company Law Tribunal (NCLT) in Mumbai has given its approval for the merger between Viacom18, owned by Reliance Industries, and Disney's Star India, marking a significant consolidation in India's media sector. The approval, granted on Friday by judicial member Kishore Vemulapalli and technical member Anu Jagmohan Singh, is set to create India's leading media conglomerate, valued at over ₹70,000 crore.
This decision by the NCLT comes on the heels of the merger's approval by the Competition Commission of India (CCI) earlier this week, further clearing regulatory hurdles for the two media giants. Reliance, through its holding company Network18, owns a diverse portfolio of TV18 news channels, various entertainment and sports channels under the 'Colors' brand, and the OTT platform Jio Cinema. The merger will bring together these assets with Star India's extensive network, forming a formidable entity in India's media landscape.
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The NCLT's order outlines several conditions that must be met for the merger to proceed. Notably, it requires approval from the Ministry of Information and Broadcasting for the transfer of TV channels from Viacom18 to Star India. Additionally, the merging companies are instructed to file the NCLT's order and the approved merger scheme with the Registrar of Companies within 30 days. They are also required to submit the order to the Superintendent of Stamps for stamp duty adjudication, if necessary, within 60 days.
The merged entity will house two leading OTT streaming platforms, Disney+ Hotstar and Jio Cinema, offering a broad range of content to millions of viewers across India.
Initially announced six months ago, the merger faced scrutiny from the CCI due to regulatory concerns. However, after both Viacom18 and Star India agreed to modify the original transaction structure, the CCI granted approval, allowing the merger to move forward.
The merger is expected to be finalized by the end of 2024 or early 2025, signaling a new era for India's media industry as two of its biggest players join forces to expand their reach and influence.
