New Delhi:
A merger between Japan’s Indian unit Sony and Zee Entertainment to create a $10 billion TV company could potentially hurt competition through “unmatched bargaining power,” the antitrust watchdog found in an initial assessment, according to a official report seen by Reuters.
The Competition Commission of India’s (CCI) notice of August 3 to the two companies said the watchdog believes further investigation into the matter is in order.
Sony and Zee decided in December to merge their television channels, movie assets and streaming platforms to create a powerhouse in a major media and entertainment growth market of 1.4 billion people, rivaling rivals such as Walt Disney Co.
The CCI’s findings will delay regulatory approval of the deal and could force the companies to propose changes to the structure, said three Indian lawyers familiar with the process. If that still doesn’t meet the CCI, it could lead to a lengthy approval and investigation process, she added.
Zee said in a statement that it will continue to take all required legal steps to complete all necessary approval processes for the proposed merger
The CCI and Sony in India did not immediately respond to requests for comment. Sony representatives in Japan did not respond outside of regular business hours.
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