NCLT approves mega merger between Reliance's Viacom18 and Disney's Star India

The National Company Law Tribunal (NCLT) at Mumbai has given the green light to the merger between Reliance Industries owned Viacom18 and Disney's Star India, setting the stage for a transformative shift in India’s media sector. [Viacom 18 Media Private Limited and Star India Private Limited].The approval granted on Friday by judicial member Kishore Vemulapalli and technical member Anu Jagmohan Singh paves the way for what will become India's leading media conglomerate, reportedly valued at over ₹70,000 crore.The NCLT's decision follows the approval to the merger granted by the Competition Commission of India (CCI) earlier this week..Reliance, through its holding firm Network 18, owns the TV18 news channels and a range of entertainment and sports channels under the 'Colors' brand as well as the OTT platform Jio Cinema. The newly merged entity will combine these with Star India’s assets, creating a formidable player in the media landscape.The NCLT’s order stipulates several conditions for the merger. Key among these is the requirement of approval from the Ministry of Information and Broadcasting for the transfer of TV channels from Viacom18 to Star India. Additionally, the petitioner companies are directed to file the NCLT order and the approved scheme with the Registrar of Companies within 30 days. They must also present the order to the Superintendent of Stamps for stamp duty adjudication, if applicable, within 60 days..The joint entity will feature two leading OTT streaming platforms: Disney Hotstar and Jio Cinema.The deal, which was initially announced six months ago, had initially faced scrutiny from the CCI. However, later approval was granted after both parties agreed to modify the original transaction structure to address regulatory concerns.The merger is expected to be completed by the end of 2024 or early 2025. .Senior Advocate Gaurav Joshi, briefed by Advocates Mehul Shah, Aman Yagnik, Haabil Vahanvaty, Rushabh Gala and Ishrita Bagchi of Khaitan & Co represented the two companies.Advocate Disha Shah with Senior Standing Counsel Subir Kumar appeared for the CGST deaprtment.Advocate Abhishek R Mishra represented the Income Tax department..[Read order]