Reliance-Disney Merger Deal Approved by the European Commission

The European Commission has approved the formation of Star India, a joint venture between Reliance Industries Ltd (RIL), The Walt Disney Co. (TWDC), and BTS Investment 1, owned by James Murdoch and Uday Shankar. Given the joint venture's insignificant activity within the European Economic Area and the businesses' combined market share, the commission found that the deal would not raise competition issues.

The merger of RIL's Viacom18 with Disney's Star India is likely to be completed in early November, following approvals from the Competition Commission of India, the National Company Law Tribunal, and the Ministry of Information and Broadcasting.

The merger will establish India's largest and most powerful media and entertainment conglomerate, worth $8.5 billion. As part of the agreement, Viacom18 will transfer its assets to Star India, which will become the operating entity following the merger. RIL will own a controlling 56% share, Walt Disney 37%, and Shankar and Murdoch's Bodhi Tree Systems 7%. Nita Ambani will serve as chairman, with Shankar as vice chairperson.

The united firm would include over 100 TV stations and two streaming services, with plans to keep Disney+ Hotstar, which is slated to transmit the Indian Premier League (IPL) by 2025.