NCLT approves Zee-Sony merger, paves way for creation of $10 billion media giant

NCLT allows Zee-Sony merger, dismisses objections; creates $10-bn media co. Tribunal reserves order on July 11 after hearing objections from creditors. Zee, Sony sought permission from NSE, BSE, CCI, SEBI. Creditors objected to non-compete clause, Punit Goenka's appointment.

The National Company Law Tribunal (NCLT) on August 10 allowed the merger of Zee Entertainment Enterprises Ltd and Culver Max Entertainment (earlier known as Sony Pictures Networks India).

This order by the Mumbai bench, headed by H.V. Subba Rao and Madhu Sinha, will pave the way for the creation of a $10-billion media company, the biggest in the country.

The tribunal also dismissed all objections regarding the merger.

The NCLT, on July 11, had reserved its order on the merger after hearing objections from several creditors.

It heard arguments from creditors, including Axis Finance, JC Flower Asset Reconstruction Co, IDBI Bank, Imax Corp and IDBI Trusteeship.

In December 2021, Zee Entertainment and Sony Pictures agreed to merge their businesses.

Both media houses approached the tribunal for sanctioning the merger after obtaining permissions from the National Stock Exchange, BSE and sectoral regulators such as the Competition Commission of India and the Securities and Exchange Board of India.