Home / Companies / News /  CCI gives conditional approval to Zee-Sony merger

The Competition Commission of India (CCI) on Tuesday granted approval with 'certain modifications' to the proposed merger of Zee Entertainment Enterprises Limited (ZEE) and Bangla Entertainment Private Limited (BEPL) with Culver Max Entertainment Private Limited (CME), formerly known as Sony Pictures Networks India.

In the official release by the commission, the merger has been approved with 'certain modifications'.

"The proposed combination relates to (i) amalgamation of each of Zee and BEPL with and into CME; and (ii) preferential allotment of certain shares by CME to Sunbright International Holdings Limited (earlier known as Essel Holdings Limited), and Sunbright Mauritius Investments Limited," CCI stated.

Bangla Entertainment Private Limited (BEPL), is an indirect-wholly owned subsidiary of Sony Group Corporation, will also be merged with CME.

The deal was first announced in September last year and the two entities had signed a definitive agreement to merge the two companies on December last year.

Under the terms of the definitive agreements, Sony will have a cash balance of $1.5 billion to enable the combined company for sharper content creation across platforms, strengthen its footprint in the rapidly evolving digital ecosystem, place bid for media rights in the fast-growing sports landscape and pursue other growth opportunities, Zee had said at the time of Board's approval for the merger.

Sony will hold a 50.86 percent stake in the merged entity, promoters of Zee will hold 3.99 percent, and the other Zee shareholders will hold a 45.15 percent stake in the combined company.

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