The Competition Commission of India (CCI) has approved the acquisition of IPL franchise Royal Challengers Bangalore (RCB) by a consortium comprising Aditya Birla Group, The Times of India Group, Bolt Ventures and Blackstone. According to reports from PTI, the regulator announced the approval on Tuesday, clearing the way for the ₹16,660 crore all-cash deal to proceed. The CCI stated it has approved the proposed deal involving 100 per cent shareholding of Royal Challengers Sports by the consortium, with the regulator keeping a tab on unfair business practices and promoting fair competition in the marketplace.
As reported by PTI, the acquisition involves a consortium comprising Big Banyan Holdings, Bolt IPL Holdings, Times Internet, Times Cricket, ICQ Opportunities, Asia Investment Topco II and others. In a regulatory filing, United Spirits Ltd (USL) has entered into definitive agreements for the sale of the 100 per cent equity stake held in its wholly owned subsidiary Royal Challengers Sports Private Ltd (RCSPL) to the consortium. The deal was originally announced by United Spirits Ltd (USL) in March this year for the sale of the IPL franchise, with the ₹16,660 crore all-cash transaction representing one of the largest deals in Indian sports franchise history. According to the CCI announcement, Big Banyan is a part of Aditya Birla Group, while Asia Investment Topco II is controlled by funds advised or managed by affiliates of Blackstone Inc and ICQ Opportunities is a part of the global investment firm ICONIQ group.
According to PTI, RCSPL's business comprises ownership of the "Royal Challengers Bengaluru (RCB)" franchise teams that participate in the Men's Indian Premier League (IPL) and Women's Premier League (WPL) cricket tournaments hosted by the Board of Control for Cricket in India (BCCI) annually. RCB, the team which had India's cricket star Virat Kohli, won its first Indian Premier League last year. The team was one of the founding teams of the IPL, which was founded in 2008 by its previous owner Vijay Mallya, and came into the fold of Diageo after it took over Mallya's liquor business, United Spirits Ltd.
As reported by PTI, in November last year, USL said it would conduct a strategic review of its investment in RCSPL, the entity that owns the IPL T20 team Royal Challengers Bengaluru. The regulatory approval process ensures that deals beyond a certain threshold require approval from the CCI, which monitors unfair business practices and promotes fair competition in the marketplace. The approval process ensures that the acquisition does not create anti-competitive conditions in the Indian sports and entertainment sector.
