New Delhi: The National Company Law Tribunal (NCLT) has fast-tracked the merger of Reliance Industries’ Viacom18 and Walt Disney’s Star India, scheduling a final hearing for August 1, 2024.
The tribunal, which initially admitted the merger scheme on May 7, 2024, has directed the companies to serve a notice to central and state governments, tax authorities, and key regulatory bodies including the Competition Commission of India (CCI) and the Ministry of Information and Broadcasting (MIB).
The order, issued by a division bench comprising Justice Anu Jagmohan Singh and Justice Kishore Vemulapalli on July 11, 2024, stipulates that if these authorities fail to respond within 30 days, their silence will be interpreted as a non-objection to the merger.
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The proposed merger, valued at a hefty $8.5 billion, aims to create a formidable media conglomerate. Once approved by the NCLT, the deal will require the green light from the CCI, which is currently scrutinizing the merger with a fine-tooth comb, having already posed nearly 100 detailed queries to Reliance and Disney.
The joint venture, once formed, will see Reliance Industries as the controlling shareholder with a 16.34% stake, while Viacom18 and Disney will hold 46.82% and 36.84% respectively.
Industry observers are keenly watching the developments, as the merger promises to reshape the Indian media landscape, with potential implications for viewers, advertisers, and the overall entertainment ecosystem.
