The competition regulator has green lighted the proposed merger between Foxtel and Fox Sports saying it won’t reduce completion.
Rupert Murdoch’s News Corp owns Foxtel jointly with Telstra and it owns 100 per cent of Fox Sports.
The merger will see News holding 65 per cent of the merged entity with Telstra holding the remaining 35 per cent. The merged entity will also enter a number of agreements with Telstra.
The Australian Competition and Consumer Commission said it would stand in the way of the merger.
It said it had looked at how the merger would affect different markets and took in feedback from various parties.
“The ACCC won’t oppose this merger after finding that the commercial incentives of Foxtel, Fox Sports, News, and Telstra will not be substantially altered. Therefore, the change in ownership structure is unlikely to substantially lessen competition,” ACCC Chairman Rod Sims said.
“Foxtel and Fox Sports have a close and long-standing relationship, operating within the ownership of News and Telstra. Given News’ current interests in both Foxtel and Fox Sports, it would be unlikely that Fox Sports would be made available to competitors of Foxtel in the absence of the merger.”