Shares of Zee Entertainment Enterprises Ltd. fell the most in over three months since May 19, on a report that the Competition Commission of India has flagged anti-trust concerns over the proposed merger of Zee Entertainment and Sony Group’s Indian unit.
According to the report, attributed to an official notice seen by Reuters, CCI flagged that the merged entity could potentially have ‘unparalleled bargaining power’. The notice also stated that “further investigation is merited” with regard to the merger. The anti-trust watchdog’s finding could lead to a delay in regulatory approval for the deal.
Sony and Zee signed definitive agreements for the merger of Zee Entertainment into Sony Pictures Networks India. If the merger is sealed, the merged entity will have a value of $10 billion, Punit Goenka, MD of Zee, said in an interview last year. The proposed merger has already received approval from the stock exchanges, BSE and NSE.