Tata Sons Seeks CCI Approval for Acquisition of an Extra 10% Stake in Tata Play

In order to obtain permission from the fair trade regulator CCI to purchase an extra 10% of DTH operator Tata Play from Singapore's sovereign wealth fund Temasek Holdings, Tata Sons, the promoter of the Tata Group, has applied. As of right now, Tata Sons owns 60% of Tata Play. Tata Sons will own 70% of the platform that distributes entertainment content once the deal is finalized. "Systemically Important Non-Deposit Taking Core Investment Company" is the designation given to Tata Sons Pvt Ltd, an investment holding company that is registered with the Reserve Bank of India as a core investment company.

The Competition Commission of India (CCI) received a notice on Thursday that stated, "The proposed transaction relates to Tata Sons' acquisition of 10% shareholding in Tata Play from Baytree Investments (Mauritius) Pte Ltd."

Baytree Investments (Mauritius) is a subsidiary of Temasek Holdings, Singapore's sovereign wealth fund.

Tata Sons claims that in compliance with Sections 6(2) and 5(a) of the Competition Act of 2002, the proposed transaction is being reported to the Commission.

Section 6(2) of the Competition Act mandates that any individual or business notify the CCI before engaging in a combination, even though Section 5(a) of the Act defines a combination as the purchase of one or more businesses, or the merger or amalgamation of businesses that surpass a certain threshold. Through its Tata Play Binge platform, Tata Play (formerly Tata Sky), one of India's leading content distribution platforms, provides over-the-top (OTT) services and Pay TV.

In their submission to the CCI for review of the proposed deal, the parties (Tata Sons and Tata Play) asserted that there would be no adverse effects on competition in any relevant market.

As a result, the definition of the relevant market may stay open, and the CCI may evaluate the deal in light of India's wired broadband internet services as well as the complementary relationship between web-based services like Tata Play Binge and internet access offered by Tata Sons through its affiliates, the statement continued.