Dhall gets CCI approval on RILs acquisition in Network 18 AZB and Khaitan lead on RILs acquisition of stake in Network 18

The Competition Commission of India (CCI) has given approval to Reliance Industries Limited’s (RIL) proposal to acquire stake in Raghav Bahl-promoted media firms Network 18 and TV18 Broadcast..RIL, through a newly created vehicle, Independent Media Trust (IMT) is infusing funds through optionally convertible debentures into Network18 Media and TV18 Broadcast..Dhall Law Chambers represented IMT and RIL in obtaining the merger control clearance. The Dhall team was led by Partner Vinod Dhall along with Associates P. Ram Kumar and Priyanka Singh..AZB & Partners is advised RIL with a team led by Partner Shuva Mandal while Khaitan & Co is advising Network 18 and TV 18 with a team led by Corporate Partners Haigreve Khaitan and Bharat Anand. On the Competition law aspect, Counsel Avaantika Kakkar assisted the team..The CCI carried out a competitive impact assessment on both the horizontal and vertical markets in which the parties to the combination are present. The CCI analysed the business of supply of television channels and event management services..The CCI noted that the business of supply of TV channels in India is featured by the presence of significant number of broadcasters operating across various genres targeting national and regional audience/viewership. Further, the television channels owned by RIL Group primarily target regional audience/viewership, whereas the television channels operated by Network 18 group is targeted towards national audience/viewership..“It is apparent that the new television channels can be started with ease in India with sufficient scope for innovation and competition, both in terms of technology and content,” CCI said in the order..In relation to the event management business, the CCI said that the parties combined market share and turnover is comparatively insignificant. Also, the Industry does not feature significant barriers to entry and the consumers of event management services possess strong bargaining power. Therefore, the proposed combination cannot is not likely to have an adverse effect on competition in the business of event management..The CCI in its 11-page order has observed that considering the facts on records the Commission is of the opinion that the proposed combination is not likely to have an appreciable adverse effect on competition in India..According to media reports, in January, Reliance Industries and Network 18 group had joined hands for a multi-layered deal, under which the Mukesh Ambani-led corporate giant would sell a part of its interest in Eenadu TV channels and would also fund promoters of the media group..At the same time, RIL group through IMT would provide funding to promoters of Raghav Bahl-led Network 18 group for acquiring shares in their two companies – Network 18 and TV18 through their respective rights issues. In all, Network 18 and TV18 would raise about Rs 4,000 crore including Rs 1,700 crore contribution of the promoters.