UTV-Disney deal gets Competition Commission nod

MUMBAI: Walt Disney has got the clearance from the Competition Commission of India (CCI) to buy out the shares of UTV Software Communications from the founder-promoters and the other shareholders in a deal pegged at Rs 20 billion.

The CCI approved the proposal as "it is not likely to have any appreciable adverse effect on competition". Disney wants to delist UTV from the stock exchanges.

UTV had approached the Commission on 1 August.

Quoting the CCI order, PTI reported: "Based on the facts on record and the notice of the proposed combination filed by the acquirer [Walt Disney] under sub-section [2] of section 6 of the Competition Act, and the examination of the businesses involved....The Commission, hereby, approves the proposed combination."

The CCI further observed that while the Disney Group was in the business of character merchandising and publishing through Disney India, the UTV Group was engaged in broadcasting, the PTI reported.

Currently, Walt Disney is the majority shareholder in UTV Software Communications with 20,497,994 equity shares, accounting for a 50.44 per cent stake.

The company?s board has approved the delisting proposal and the acquisition of shares from the public at a price not exceeding Rs 1000 per equity share.