Reliance Expects to Complete Merger with Disney’s India Business in Q3

The anticipated merger between Reliance Industries and The Walt Disney Company’s India business is set to establish the largest media empire in India, valued at over ₹70,000 crore. According to a regulatory filing by Mukesh Ambani’s Reliance Industries, the merger is expected to be finalized by the end of the third quarter of this fiscal year. The Competition Commission of India (CCI) has already approved the merger of Viacom18 and Star India, with the National Company Law Tribunal (NCLT) sanctioning the merger scheme.

Progress and Approvals

Reliance Industries recently confirmed both companies are close to securing necessary merger approvals. The NCLT has approved the merger of Reliance Group-controlled media assets, effective October 3. This includes TV18 Broadcast and E18 merging with Network18 Media & Investments. On September 27, the Ministry of Information and Broadcasting approved transferring licenses from Reliance’s media entities to Star India.

Structure of the Combined Entity

Viacom18 is part of Reliance’s media and entertainment portfolio. Star India will combine with Viacom18 to create a powerful entity. This entity will house two streaming services and over 120 television channels. After the merger, Reliance Industries will hold 63.16% of the combined entity. Walt Disney will retain a 36.84% stake in the new entity. The CCI did not disclose specific voluntary modifications related to the original deal.

Financial Implications

To strengthen the joint venture and enhance its competitive stance against major rivals like Sony and Netflix, Reliance Industries has committed to investing approximately ₹11,500 crore. Nita Ambani, wife of Reliance Chairman Mukesh Ambani, will lead the joint venture, with Uday Shankar serving as the vice-chairperson.

Conclusion

As the merger progresses towards completion, it signifies a pivotal moment in the Indian media landscape, consolidating significant assets under one roof. This merger not only positions Reliance and Disney as formidable players in the industry but also sets the stage for new strategies and innovations in media and entertainment in India.