PVR, Inox Leisure Rise As CCI Rejects Complaint Against Proposed Merger
CCI rejected complaint against the proposed merger of PVR and Inox Leisure, by CUTS International
Shares of Inox Leisure Ltd. and PVR Ltd. gained after the Competition Commission of India rejected the complaint raised against the proposed merger of the two multiplex operators by CUTS International.
The CCI said there was no prima facie case as the apprehension of "appreciable adverse effect on competition" by an entity which is yet to take form cannot be a subject matter of inquiry under Section 3 of the Competition Act, 2022.
The anti-trust body also said the dominance per se, even if the proposed transaction is concluded, is not anti-competitive.
CUTS had filed an information with CCI on Aug. 18 urging it to investigate possible anti-competitive effects of the proposed merger. It has listed concerns such as potential reduction in consumer choice, high ticket prices, high bargaining power of PVR-Inox post the merger, due to enhanced market power.
Shares of Inox Leisure gained 4%, while PVR rose over 1%.