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Walt Disney Co and Reliance Industries have won approval for an $8.5 billion merger of their Indian media assets subject to some modifications, India's antitrust watchdog said on Wednesday, after the deal sparked concerns over control of cricket broadcasts.

Reliance-Disney aims to create India's biggest entertainment player to compete with Sony, Netflix and Amazon with 120 TV channels and two streaming services.

The Competition Commission of India (CCI) sent a warning notice to the companies earlier this month expressing concern that a merged entity would have a tight grip on most cricket rights for TV and streaming in India, and could hurt advertisers.

The two companies have since offered concessions to the CCI, including a commitment to not raise advertising rates unreasonably for streamed cricket matches, according to a source with direct knowledge of the matter.

The CCI said in a statement it "approves the proposed combination", without giving any more details.

The merged company will be majority owned by Asia's richest man Mukesh Ambani's Reliance. The CCI had privately asked Reliance and Disney around 100 questions related to the merger.