CCI gives nod to Jio Cinema OTT and Viacom18 Media merger
In its statement, the regulator said that the proposed merger is not likely to impact competition negatively
The Competition Commission of India (CCI) has given permission to the proposed merger between Jio Cinema OTT and Viacom18 Media. The Fair-trade regulator announced the decision on Monday following an investment by Bodhi Tree Systems (BTS1) and Reliance Projects and Property Management Services Limited (RPPMSL).
CCI said that it approved the merger since it does not raise any concerns of competition. It also stated that the definition of the relevant product and geographic market may ultimately be left open, as the relevant markets and highly competitive. It also added that the merger is not likely to impact competition negatively.
Back in April this year, there was an announcement by Reliance Industries Ltd and Viacom18 about a strategic partnership with BTS1, which would pledge Rs 13,500 crore in Viacom18, and RPPMSL, which would invest Rs 1,645 crore. This partnership would forge one of the largest TV and digital streaming firms in India and would transfer Reliance's Jio Cinema OTT app to Viacom18.
Such mergers require the CCI approval if it entails the acquisition of shares, assets, control or voting rights if the parties have assets in excess of Rs 2,000 crore in India or a turnover in excess of Rs 6,000 crore. This is strictly to ensure the prevention of unfair trade practices in the business.
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