CCI proposes modifications in PVR's Rs500cr bid for DT Cinemas

To address competition concerns, fair trade regulator CCI has proposed certain modifications to the Rs 500 crore deal between PVR and DLF group's DT Cinemas that would create one of the largest multiplex chains in the country.
The Competition Commission of India has under section 31(3) of the Competition Act, 2002 has proposed certain modifications to the combined entity, PVR informed the BSE.
"The company has received a communication from the CCI dated February 25, 2016 under Section 31(3) of the Competition Act, 2002, whereby the CCI has proposed certain modifications to the proposed combination with DLF Utilities Limited in relation to acquisition of DT Cinemas," it said.

It added: "The company is reviewing the communication and will respond to the CCI in due course".
Section 31(3) empowers CCI to propose appropriate modification to the combination, when it is of the opinion that the combination has, or is likely to have, an appreciable adverse effect on competition but such adverse effect can be eliminated by suitable modification to such combination.
In December last year, CCI had asked PVR to publish details of acquisition within ten days.

CCI had sought comments from the public on the deal after finding that it was likely to adversely impact competition.
In June last year, PVR had announced plans to acquire real estate major DLF's cinema exhibition business, DT Cinemas, for Rs 500 crore.

After the proposed acquisition, PVR would have presence in 44 cities with 115 multiplexes and over 500 screens.
At the time of striking the deal, DT Cinemas had 29 screens with approximately 6,000 seats at eight locations in National Capital Region (NCR) and Chandigarh, while PVR operated a network of 477 screens spread over 107 properties in 44 cities.