European Commission gives its approval to Reliance-Disney merger

The Reliance-Disney mega merger is reaching its completion stage. The joint venture deal between Reliance Industries Ltd (RIL), The Walt Disney Company (TWDC) and BTS Investment 1, has received the approval of the European Commission.

The European Commission has given its go ahead stating that this deal will not raise competition issues in the European economic area, given the limited exposure of these companies within these markets.

As per media reports, the merger between Reliance’s Viacom18 and Disney’s Star India is expected to be concluded in November, following the receipt of the final approvals of the Ministry of Information and Broadcasting, the Competition Commission of India, and the National Company Law Tribunal. 

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The merger, valued at $8.5 billion, envisages to combine the entertainment businesses (along with certain other identified businesses) of Viacom18, part of RIL group and Star India Private Limited (SIPL), wholly owned by The Walt Disney Company (TWDC). As a result of the transaction, SIPL, currently a wholly-owned entity of TWDC through its subsidiaries, shall become a joint venture (JV), which will be jointly held by RIL, Viacom18 and existing TWDC subsidiaries. 

On February 28, 2024, Star India signed a definitive agreement with Reliance Industries Limited (RIL) and Viacom18 Media Private Limited to establish a joint venture. This merger will integrate their entertainment, sports, pay TV, free-to-air networks, direct-to-consumer services, library content, and certain production businesses.