27 May, 2015
On March 24, 2015, the CCI approved the acquisition of the film exhibition business of Reliance MediaWorks Limited (‘Reliance Media’) by Cinema Ventures Private Limited (‘CVPL’) including the food and beverages business, and 98 % of the shares of CVPL by carnival Films Private Limited (‘Carnival’). The notice was filed pursuant to a business transfer agreement (‘BTA’) executed between the parties.
CCI observed that Carnival is engaged in the business of film exhibition and other related activities such as food and beverages business and provision of on and off screen advertising within Carnival operated cinemas. Reliance Media is engaged in the business segments of film and media services, television content production and film exhibition business.
CCI further observed that the film industry in India involved three stages – production, distribution and exhibition. CCI observed that multi screen cinemas were distinct from single screen theaters, due to reason such as cost, modern technology, ambience, and related services. Therefore, the market for exhibition of films in multi-screen cinemas was distinct from single screen cinemas.
In the course of its assessment, CCI determined that there were overlaps between Carnival and Reliance Media in certain cities in India but the presence of competitive constraints ensured that no competition concerns would arise as a result. Further, CCI observed that the transaction was unlikely to result in higher prices for consumers or impact amenities provided to customers. Accordingly, CCI approved the transaction under Section 31(1) of the Competition Act.
For further information, please contact:
Zia Mody, AZB & Partners
zia.mody@azbpartners.com
Abhijit Joshi, AZB & Partners
abhijit.joshi@azbpartners.com
Shuva Mandal, AZB & Partners
shuva.mandal@azbpartners.com
Samir Gandhi, AZB & Partners
samir.gandhi@azbpartners.com
Percy Billimoria, AZB & Partners
percy.billimoria@azbpartners.com
Aditya Bhat, AZB & Partners
aditya.bhat@azbpartners.com
