NCLT Withdraws Approval of Zee-Sony Merger Amid Settlement

The National Company Law Tribunal has withdrawn its approval for Zee Entertainment and Sony Pictures Networks India's merger. The decision follows a settlement agreement between the parties. Zee and Sony have agreed to terminate the merger and withdraw all relevant legal claims and proceedings.

The National Company Law Tribunal (NCLT) has revoked its earlier approval of the Zee Entertainment and Sony Pictures Networks India merger, following a mutual settlement agreement.

Last week, the Mumbai bench of the NCLT recalled its August 10, 2023, order that had approved the merger between the two entertainment giants. The bench noted that both parties had consented to withdraw the scheme due to a settlement and passed resolutions to that effect.

In a statement released to bourses, Zee explained that the Composite Scheme of the Merger Cooperation Agreement had been terminated, meaning the closing date had not occurred, and the scheme was not effective. Earlier in August, Zee and Sony announced they had resolved their six-month dispute concerning the failed $10-billion merger and agreed to withdraw all legal claims against each other.

(With inputs from agencies.)