Billionaire Mukesh Ambani-promoted Reliance Industries has sought approval from fair trade regulator Competition Commission of India (CCI) for the $8.5-billion merger of Viacom18 and Star India Pvt Ltd (SIPL).

"The proposed transaction aims to combine the entertainment businesses (along with certain other identified businesses) of Viacom18, part of Reliance Industries Ltd (RIL) group and SIPL, wholly-owned by The Walt Disney Company (TWDC).

"As a result of the transaction, SIPL, currently a wholly-owned entity of TWDC through its subsidiaries, will become a joint venture (JV) which will be jointly held by RIL, Viacom18 and existing TWDC subsidiaries," a notice filed with the CCI said on Friday. The proposed transaction will not cause any appreciable adverse effect on competition in India, RIL said in the notice.

However, to facilitate the CCI's assessment, they have identified several key markets where horizontal overlaps were significant such as licensing of audio visual content rights, distribution of broadcast TV channels, provision of audio visual (AV) content, and supply of advertising space in India.

SIPL is engaged in a range of media activities, including TV broadcasting, motion pictures and operation of an OTT platform. It is a wholly-owned entity of US-based The Walt Disney Company (TWDC).

Viacom18 is engaged in the business of broadcasting of television (TV) channels, operation of an over-the-top (OTT) platform, in India and worldwide. It is also engaged in the business of production and distribution of motion pictures.

In February this year, global media giant Walt Disney Co and Reliance Industries announced signing of binding pacts to merge their media operations in India to create a ₹70,000 crore ($8.5 billion) behemoth.

After the successful completion of the deal, it would create the biggest firm in the Indian media and entertainment sector, with over 100 channels in several languages, two leading OTT platforms and a viewer base of 750 million across the country.

Nita Ambani, wife of Reliance Industries Chairman Mukesh Ambani, will chair the joint venture, while Uday Shankar will be the Vice Chairperson.

Reliance and its affiliates will hold 63.16 per cent stake in the combined entity, while Disney will have the remaining 36.84 per cent shareholding. Reliance has also agreed to invest around ₹11,500 crore into the joint venture to grow the OTT business.