Zee-Sony Merger: Disappointed with SIAC rejection; will continue to arbitrate the matter, says Sony

Sony terminated the merger on January 22, citing breaches of contract, thereby ending a deal that could have led to the creation of one of India's largest TV broadcasters.

After its emergency petition over the collapsed merger deal with Zee was rejected, Sony said it was "disappointed" by the decision of the Singapore International Arbitration Centre (SIAC).

Also Read | Singapore arbitration panel denies emergency relief to Sony against Zee's plea before NCLT 

"This decision is only a procedural one, ruling only as to whether Zee Entertainment would be permitted to pursue its application with the NCLT. We will continue to vigorously arbitrate the matter in Singapore in front of a full SIAC tribunal and pursue SPNI’s right to terminate the merger agreement and seek a termination fee and other remedies. We remain confident in the merits of our position in both Singapore and India," a Sony statement said.

In the meantime, Zee Entertainment has announced that it can now seek enforcement of the $10-billion merger with Sony's Indian unit through an Indian tribunal. Sony terminated the merger on January 22, citing breaches of contract, which effectively ended a deal that could have created one of India's largest TV broadcasters. However, Zee has firmly rejected these claims and is now looking to an Indian tribunal to compel Sony to fulfil its obligations and complete the merger.

SIAC is the first arbitration institution in Asia to offer the process of appointing an Emergency Arbitrator. Since 2010, it has received over 130 applications for this purpose. If an application for emergency interim relief is approved, an emergency arbitrator is appointed within a day.

Sony recently initiated an arbitration proceeding against Zee, claiming a breach of terms. In response, Zee has taken legal action to contest Culver Max and BEPL's claims at the SIAC. Zee Entertainment has also rejected Sony's demand for $90 million in termination fees as legally untenable. It has also denied violating the merger agreement as alleged by Sony.

(This is a developing story, kindly come back for more updates)