Reliance Industries Ltd (RIL) witnessed its shares jump more than 1.5% on Thursday after the Mukesh Ambani-led conglomerate announced signing a merger agreement with Walt Disney’s India unit. 

RIL’s shares hit an intraday high of Rs 2,909.05, 1.6% higher than its previous closing price on the National Stock Exchange (NSE). At 3:20 pm, the stock was trading 0.6% higher at Rs 2,928.95.

In an exchange filing dated Wednesday, February 28, Reliance, Viacom 18 Media Pvt Ltd and The Walt Disney Company inked binding definitive agreements to form a joint venture (JV) to merge their media operations in India. 

As per the deal, Viacom18’s digital streaming and television assets will be merged into Star India Pvt Ltd through a court-approved arrangement, creating one of the country’s largest media empires valued at Rs 70,352 crore. 

Reliance would manage and control the JV and will invest Rs 11,500 crore into the merged entity to grow the media business. Disney may also contribute additional media assets, subject to regulatory and third-party approvals.

Disney will have a 36.84% shareholding in the JV, while Reliance and its affiliates will hold a 63.16% stake (16.34% by RIL and 46.82% by Viacom18). Nita Mukesh Ambani will be the Chairperson of the JV, with Uday Shankar as her Vice Chairperson.