Star India’s parent firm News Corporation’s proposal to acquire ESPN Star Sports has got a green signal from the Competition Commission of India (CCI).
The Rupert Murdoch-owned News Corp had announced plans to buy out the remaining 50 per cent stake in ESPN Star Sports from ESPN.
“Considering the presence of other sports channels in India, such as DD Sports, TEN Action Plus, Ten Sports, Ten Cricket, Ten Golf, Sony Six, Neo Sports Plus, Neo Prime etc, the proposed combination is not likely to give rise to any adverse competition concern in India,” the CCI said.
It said the proposed deal related to the acquisition of the entire partnership interest of EGP Company in ESPN Star Sports by StarTV ATC Holding Ltd. StarTV ATC and Yarraton Ltd are part of News Corp.
The proposed acquisition would result in a change in the ownership of the ESS India subsidiaries, which would be owned by News Corp once the transaction is complete.
Dhall Law Chambers, headed by Vinod Dhall, represented StarTV ATC, an indirectly wholly-owned subsidiary of Newscorp on their pre-merger filing with the CCI.
“The CCI observed that though the proposed combination results in transfer of joint control to sole control of NWS over ESS, it would not result in elimination of any competitor from the market as NWS and ESPN, the joint venture partners are not competing with each other in the market for broadcasting of sports channels in India,” Dhall said.
CCI said post-combination, ESPN can again consider an entry into the Indian market, after completion of the non-compete period specified in the agreements.
ESPN Star Sports is a 50:50 joint venture between the Walt Disney Company and News Corporation Ltd.
Incorporated in the British Virgin Islands, StarTV ATC is engaged in making and holding investments.
Currently, the entity does not have any assets or turnover in India or otherwise.