Carnival gets the green signal to acquire Big Cinemas

NEW DELHI: The acquisition by the Carnival Group of the Big Cinemas chain owned by Anil Ambani’s Reliance MediaWorks has been cleared by the Competition Commission of India (CCI).


It is learnt that the South India-based Carnival Group had offered $112 million for Big Cinemas in December 2014. 


In January this year, Carnival also acquired Stargaze Entertainment’s cinemas. The company now has a total of 330 screens, making Carnival India’s third largest multiplex operator. The Inox group has 361 screens while market leader PVR has 454.


The proposed transaction will reduce Reliance Capital's overall debt by Rs 700 crore and is part of Reliance Capital's strategy to exit minority investments.

CCI said in its order that "the proposed combination is not likely to have an appreciable adverse effect on competition in India."

Under the agreement executed on 14 December, 2014, the film exhibition business of Reliance MediaWorks along with the food and beverages business, which is a part of the film exhibition business (but excluding all forms of film exhibition through Internet, mobile or television of Reliance MediaWorks), would be transferred to Cinema Ventures Private Ltd (CVPL) - a subsidiary of Reliance MediaWorks.


As many as 88 cinemas (72 multiplexes and 16 single screen cinemas) operated by Reliance MediaWorks having 238 screens are proposed to be transferred by Reliance MediaWorks to CVPL.


Following this, Carnival will acquire 98 per cent stake in CVPL whereas a director of Carnival will acquire the remaining two per cent shareholding.


"It is noted that pursuant to the proposed combination, there are overlaps between Carnival, Stargaze and Reliance MediaWorks with respect to the multiplexes in seven cities namely Indore, Mumbai, Dindigul, Ghaziabad, Dehradun, Raipur and Ajmer," the order said.


However, CCI observed that in Indore, Mumbai, Ghaziabad, Dehradun, Raipur and Ajmer, "competition concerns may not arise as there are other multiplexes in these cities exercising competitive constraint on the acquirer pursuant to the proposed combination in terms of the pricing and services offered within the cinemas."


In the case of Dindigul, it was stated that "it is unlikely that the combination would result in increase in prices or would have an adverse impact on the amenities provided to the consumers in Dindigul."


The deal struck between Carnival Cinemas and Reliance MediaWorks will exclude Imax Wadala (Mumbai) and some other properties worth Rs 200 crore.


Reliance Capital is the parent firm of Reliance MediaWorks, which operates one of the largest cinema chains, under the brand BIG Cinemas.

Latest Reads
Exquisite partners with Warner Bros. consumer products

Exquisite, an innovative and experienced player in the EMEA market, has teamed up with Warner Bros. Consumer Products EMEA (WBCP EMEA), on behalf of DC Entertainment, to create the first retail loyalty programmes featuring DC Super Heroes.

MAM Marketing Brands
Cadbury Bournvita Biscuits introduces new tiffin pack

Mondelez India Foods is set to launch a new tiffin pack of its highly successful Cadbury Bournvita Biscuits with an aim to encourage consumers to make it a habit in the morning to have the biscuit.

MAM Marketing Brands
FCB Ulka wins advertising duties for AVT Premium

MUMBAI: A.V. Thomas & Company has appointed FCB Ulka Bangalore to handle the advertising duties for their flagship brand, AVT Premium. The win adds to FCB Ulka Bangalore’s portfolio which includes marquee clients like ITC Biscuits & Confectionery and Wipro Consumer Care & Lighting. AVT...

MAM Media and Advertising Account
Wringley's Doublemint tells a 'fresh' new love story

MUMBAI: Released on Youtube on 21 October, the new TVC of Wringley's Doublemint conceptualised by BBDO Indua and directed by Shoojit Sircar has already garnered over two lac views.

MAM Media and Advertising Ad Campaigns
Flipkart announces integrated brand communication campaign

There are a host of dates earmarked in India’s annual calendar where consumers wait with bated breath to partake of the celebrations. Clearly figuring in this list is the ‘The Big Billion Days’ (BBD), that has been made popular by Flipkart over the past two years. As a concept, Big Billion Day was...

MAM Media and Advertising Ad Campaigns
Colors campaign inspires men to take over Sunday chores

Colors has launched a new movement called #SundayIsHerHoliday. The campaign -- one Sunday at a time -- is inviting every man (and woman) to participate. The goal of the campaign is to inspire and help men take over the Sunday chores of women, so she can get her much needed time off.

MAM Media and Advertising Ad Campaigns
betterU launches Diwali campaign #FestivalOfLearning

India’s online learning marketplace, betterU, has launched a unique Diwali campaign #FestivalOfLearning across its digital platforms.The campaign aims at helping people think differently about their purchases, and highlights the importance of investing for the long term on the auspicious occasion...

MAM Media and Advertising Ad Campaigns
BBH India creates live radio spots for Abbott

BBH Mumbai has released a case study on the first ever live radio spots for Abbott's The Race of Possible’ campaign, which received overwhelming response in India.

MAM Media and Advertising Ad Campaigns
Abhibus's 'Har Safar Mein Aapka Hamsafar' Mahesh Babu, India’s online bus ticket booking platform, has announced superstar Mahesh Babu as their brand ambassador. He will also feature in the company`s marketing campaign called 'Har Safar Mein Aapka Hamsafar' (With you on all your journeys, wherever you go).

MAM Media and Advertising Ad Campaigns

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories