After CCI, NCLT Mumbai approves Reliance-Disney merger

"Heard all the Counsel and the representative of the Regional Director, Western Region, Ministry of Corporate Affairs, Mumbai. No objector has come before this Tribunal to oppose the Scheme nor has any party raised objection in the Petition," read NCLT's order, reported the Economic Times.

According to the report, division bench of technical member Anu Jagmohan Singh and judicial member Kishore Vemulapalli said in its 22-page order on Friday said, "From the material on record, the scheme appears to be fair and reasonable and is not violative of any provisions of law and is not contrary to public policy."

The Mumbai bench of the National Company Law Tribunal (NCLT) has approved the mega merger between Reliance-promoted Viacom18 and Walt Disney-owned Star India, creating India's largest media empire valued at over Rs 70,000 crore.

This clearance follows the earlier approval from the Competition Commission of India (CCI).

Reliance, through its holding firm Network 18, currently owns TV18 news channels, entertainment channels under the ‘Colors’ brand, and sports channels.

The Economic Times first reported on August 2 that the two conglomerates expected to finalize the merger by October.

The combined entity will include two major OTT streaming platforms, Disney Hotstar and Jio Cinema.

The merger, announced six months ago, was scrutinized by the anti-trust regulator and received approval after both parties proposed certain modifications to the original deal structure.

Under the terms, Reliance Industries Ltd (RIL) and its affiliates, led by Mukesh Ambani, will hold a 63.16 percent stake in the new entity, which will encompass two streaming services and 120 television channels.

The Walt Disney Company will retain a 36.84 percent stake, making the combined entity India’s largest media house.

Reliance Industries has also committed nearly Rs 11,500 crore to the joint venture to strengthen its competitive position against rivals like Sony and Netflix.

Nita Ambani, wife of RIL Chairman Mukesh Ambani, will chair the joint venture, with Uday Shankar serving as Vice Chairperson.

The CCI approved the “proposed combination involving Reliance Industries Limited, Viacom18 Media Private Limited, Digital18 Media Limited, Star India Private Limited (SIPL), and Star Television Productions Limited (STPL), subject to compliance with voluntary modifications.”

Viacom18 is part of the RIL group, while SIPL is fully owned by The Walt Disney Company, and STPL, based in the British Virgin Islands, is indirectly owned by Disney.