New Delhi: The Competition Commission of India (CCI) on Wednesday approved the merger between Zee Entertainment Enterprises Ltd’s DTH platform Dish TV and Videocon d2h, the direct-to-home television arm of Videocon Industries Ltd.
The companies had announced their merger in November 2016. The new company will be called Dish TV Videocon Ltd. Dish TV will own 55% and Videocon 45% stake in the new company.
In a statement released on Wednesday, Dish TV said that the company has already received the approval from the Securities and Exchange Board of India (Sebi), NSE and BSE Ltd for the proposed merger.
Dish TV has also called a meeting of equity shareholders on 12 May 2017 to seek their approval for the merger, according to the statement.
Earlier this year, CCI had asked the Telecom Regulatory Authority of India (Trai) to weigh in on whether the merger of DTH firms Dish TV India Ltd and Videocon d2h Ltd will violate any anti-trust laws, Mint had reported on 9 March.
The proposed transaction is expected to create a leading cable and satellite distribution platform in India which will serve 27.6 million customers (data as of 30 September) and will have a 45% market share. Jawahar Goel, managing director of Dish TV, will lead the combined entity as chairman and managing director.
Dish TV is currently the market leader with a 25% share, followed by Tata Sky with a 23% market share, according to data from Trai. Videocon d2h and Bharti Telemedia have 20% market share each.
At present, India has seven DTH firms including state-owned broadcaster Doordarshan’s DTH platform for free-to-air channels called DD Free Dish. According to a 2013 report on the Indian DTH market by Hong Kong-based research firm Media Partners Asia, revenues in the DTH industry are expected to touch $3.9 billion by 2017 and $5.3 billion by 2020, up from $1.5 billion in 2012.