Tata Sons Eyes Greater Control of Tata Play with Additional Stake Acquisition

Tata Sons seeks approval from the Competition Commission of India (CCI) to acquire an additional 10% stake in Tata Play from Temasek Holdings' affiliate, Baytree Investments. This acquisition will increase Tata Sons' stake from 60% to 70% in the content distribution platform, reinforcing its presence in the sector.

Tata Sons, the promoter of the Tata Group, is pursuing regulatory approval from the fair trade regulator, the Competition Commission of India (CCI), to purchase an additional 10% stake in DTH provider Tata Play. The stake is being acquired from Singapore's sovereign wealth fund, Temasek Holdings.

Currently, Tata Sons holds a 60% stake in Tata Play. Upon completion of the transaction, Tata Sons' stake will rise to 70%, bolstering its control over the entertainment content distribution platform.

The CCI notification regarding the proposed deal indicates that it falls under Sections 6(2) and 5(a) of the Competition Act, 2002. This requires entities to notify the Commission before forming certain mergers or acquisitions. Tata Sons maintains that the purchase won't harm competition in relevant markets.

(With inputs from agencies.)