New Delhi: The Competition Commission of India (CCI) has approved the merger of the film and media services business of Reliance MediaWorks Ltd (RMW), the media and entertainment arm of Reliance Group and Prime Focus Ltd (PFL), a public limited company. The CCI has found that the merger would not have any appreciable adverse impact on competition in India.

Among other things, PFL will acquire all the fixed assets and current assets and liabilities of the film and media division of RMW, including its studio facility in Mumbai’s Film City and full ownership of Los Angeles based digital film restoration firm Lowry Digital. RMW will also acquire approximately 30.24% of the equity share capital of PFL.

PFL and RMW had also announced their mandatory open offer in PFL at Rs52 per share for 26% of fully diluted share capital. After this, the promoters will have 33.5% shareholding of PFL and 30.2% for RMW.

On 2 July, RMW had announced its intention to merge its global film and media services with PFL through a slump sale. This merger will lead to the creation of the largest media services group in the world, with a workforce of 5,500 people across 20 locations globally. Through the merger, PFL will be able to expand its reach into the UK, North America and India.

The companies had given a notice to the antitrust regulator on 1 August.

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