Competition Commission Approved Multiplex PVR-DT Cinemas Deal
Competition Commissions approved multiplex PVR-DT Cinemas deal from DLF while directing the companies to exclude certain assets, the deal to address anti-competitive concerns for different multiplex PVR, DT Cinemas across the country.
Last june, PVR had announced the acquisition of DT Cinemas for Rs 500 crore after aborting a similar deal in February 2010. After prima facie finding that the transaction could impact competition in the relevant market.
Last year Competition Commissions approved multiplex, had put the deal for public scrutiny. In a regulatory filing DLF said now, deal will exclude seven screens in Saket and Greater Kailash in South Delhi.
In a tweet, the watchdog today said, it has cleared ‘’PVR’s acquisition of DT Cinema’s multiplexes, singles screen threaters in Delhi NCR and Chandigarh, subject to modification’’.
According to sources, the deal value would be reduced by around Rs 50-60 crore as the size of the seven screens to be excluded from transaction is small. ‘’ The competition Commission approved the proposed combination in relation to acquisition of DT cinemas, with certain modification which inter alia include exclusion of DT Savitri and DT Saket from the proposed combination’’. Company filing said.
CCI’s PVR is said to assessing the order and would take appropriate action in due course. Both parties are initiating the necessary steps to successful closing of this transaction. DLF the country’s largest realty firm said. The transaction had originally envisaged PVR acquiring 39 screens of DT Cinemas from DLF with total capacity of around 9,000 seats.
The Competition Commission of India (CCI) has called for divestment of assets in a big ticket deal as a condition for approval. In two mega transaction, the $4 billion Sun Pharma Ranbaxy and Holcim Lafarge deals, CCI had called for divestment of certain assets by the entities to address anti competition concerns.