08:05 AM EDT, 08/20/2024 (MT Newswires) -- India's antitrust watchdog has concluded preliminarily that the $8.5 billion merger of Walt Disney's ( DIS ) India assets and Reliance MediaWorks hurts competition, Reuters reported Tuesday, citing unnamed sources.

The Competition Commission of India considers the two companies' potential domination of cricket broadcast rights the main obstacle, the report said.

The watchdog has asked the companies to explain why the merger should not come under investigation, the report said.

The companies have suggested they could sell some of their television stations to ease competition concerns, but declined to budge on cricket, citing licensing agreements that do not expire until 2027 and 2028, the report said.

Disney's ( DIS ) India unit and Reliance did not immediately reply to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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