New Delhi: The Competition Commission of India (CCI) approved the merger between DTH platform Dish TV and Videocon d2h on Wednesday.
After the completion of merger, the new entity will be named, Dish TV Videocon Ltd., in which Dish TV will own 55% and Videocon will be holding 45% stake in the new company.The companies had announced their merger in November 2016.
Dish TV has already received the approval from the Securities and Exchange Board of India (Sebi), NSE and BSE Ltd for the proposed merger.Dish TV has also called a meeting of equity shareholders on 12th May 2017 to seek their approval for the merger.
Earlier this year, CCI had asked the Telecom Regulatory Authority of India (Trai) to weigh in on whether the merger of DTH firms Dish TV India Ltd and Videocon d2h Ltd would violate any anti-trust laws.
The proposed transaction is expected to create a leading cable and satellite distribution platform in India that will serve 27.6 million customers (data as of 30 September) and will have a 45% market share. JawaharGoel, managing director of Dish TV, will lead the combined entity as chairman and managing director.
Dish TV is currently the market leader with a 25% share, followed by Tata Sky with a 23% market share, while Videocon d2h and Airtel DTH have 20% market share each.