Sony-Zee merger may be finalised by November despite appeals from banks

IDBI Bank and Axis Finance have both filed pleas National Company Law Appellate Tribunal (NCLAT) challenging the merger

Sony Group Corp's India unit and Zee Entertainment Enterprises Limited (ZEEL) are on track to close their pending merger deal as early as November, according to a report by the Economic Times. Despite appeals from financial institutions, the merger is expected to proceed, with the Boston Consulting Group working to complete the integration process.

Sony Group Corp had issued a statement last month stating that the Sony-Zee merger would be completed in a few months, but had not given any set deadline. The transaction was initially expected to be closed by the end of September, it had said in a statement to the American stock exchanges.

Also Read: Zee-Sony case: NCLAT defers hearing over IDBI, Axis Finance plea to Oct 31

IDBI Bank and Axis Finance have both filed pleas with the National Company Law Appellate Tribunal (NCLAT), which challenged the August 10, 2023, order of the Mumbai bench of the National Company Law Tribunal (NCLT) to approve the merger of Zee Entertainment Enterprise with Culver Max Entertainment, formerly Sony Pictures Networks India.

The last hearing on the matter was on October 13, and the next hearing is scheduled for October 31. The NCLAT has not issued notice over the petitions filed by the private lender and the non-banking financial company (NBFC). However, it did say that ZEEL may file a response to both petitions if needed.

Despite this, both companies are reportedly aiming to finalise the merger by early next month while recognising that legal and regulatory processes may cause some delay,

The Zee stock has surged over 40 per cent since June in anticipation of the merger.