The PVR-INOX Merger: Bouncing Back From The Pandemic

On March 27, 2022, PVR Limited ("PVR") announced that it proposes to merge with INOX Leisure Limited ("INOX"). Pursuant to the merger, the shareholders of INOX will receive shares of PVR at the approved share exchange (swap) ratio (the "PVR-INOX Transaction").

While existing screens of PVR and INOX are proposed to continue their present branding (i.e., 'PVR' or 'INOX', respectively), new cinemas opened following the merger will be branded as 'PVR-INOX'. The PVR-INOX Transaction is expected to bring together two of India's largest cinema brands with a combined network of more than 1,500 screens.¹

Ordinarily, a deal of this magnitude would require the prior approval of the Competition Commission of India ("CCI"). In fact, PVR's acquisition of 39 screens from DT Cinemas (the "PVR-DT Transaction") in 2016 also required the approval of the CCI.