CCI Approves Proposed Investment by Qatar Investment Authority in BTS Investment 1 Pte

CCI Approves Proposed Investment by Qatar Investment Authority in BTS Investment 1 Pte

The competition regulator, Competition Commission of India (CCI) has approved the proposed investment by Qatar Investment Authority (QIA) in BTS Investment 1 Pte (BTS1), a Singapore based pooled vehicle.

The proposed transaction relates to the proposed investment by Qatar Investment Authority in BTS1, which is raising capital from various investors for its investment in Viacom18, CCI said.

BTS1 and Viacom18 are together referred to as the Target Entities.

QIA is a sovereign wealth fund of the State of Qatar, while BTS1 is an investment venture firm of James Murdoch's Lupa Systems and ex-chairman of Star and Disney India Uday Shankar.

QIA is among the largest sovereign wealth funds globally. It invests across a wide range of asset classes and regions as well as in partnership with leading institutions around the world to build a global and diversified investment portfolio with a long-term perspective that can deliver sustainable returns and contribute to the prosperity of the State of Qatar. The INQ Holding LLC (Acquirer) has no physical presence in India.

BTS1 is a company incorporated under the laws of Singapore. It is currently in the process of raising capital from various investors including reputed sovereign funds, multinationals, and global institutional investors.

Viacom 18 is engaged in providing the following services in the media and entertainment sector in India: (a) broadcasting of channels across genres, (b) OTT video streaming through Voot and Voot Kids, (c) production and distribution of feature films, (d) production and licensing of digital content, and (e) other allied businesses.

Furthermore, the Proposed Transaction is in the nature of an acquisition and falls under Section 5(a) of the Competition Act, 2002 and is being filed under Schedule III, read with sub-regulation (1) of Regulation 5A of the Competition Commission of India (Procedure in regard to the transaction of business relating to combinations) Regulations, 2011 (as amended) (Green Channel Filing) introduced by the Hon’ble Competition Commission of India and effective from 15 August 2019.

Accordingly, the CCI cleared the proposed investment by Qatar Investment Authority (QIA) in BTS1 and said the deal has been cleared under the green channel route, wherein a transaction which does not raise any risk of an appreciable adverse effect on competition is deemed to be approved on being intimated to the competition watchdog.

Thus, the CCI gave green signal to the proposed investment as it found that the QIA and the target entities including their affiliates do not have any horizontal overlaps, vertical relationships or complementary businesses in India and raises no risk of any adverse effect on competition. Given that the proposed transaction is being notified under the green channel.