Green light for Foxtel-Fox Sports merger

Green light for Foxtel-Fox Sports merger

The Australian Competition and Consumer Commission announced today it would not oppose the proposed merger of Foxtel and Fox Sports, giving the green light for News Corp Australia to ready the new entity for a future sharemarket float.

ACCC chairman Rod Sims said the change in ownership structure was unlikely to substantially lessen competition.

Under the terms of the merger, News would end up with a 65 per cent stake in the new entity, and Telstra 35 per cent. Telstra and News currently share a 50-50 per cent stake in Foxtel, while Fox Sports is wholly owned by News.

News and Telstra announced in August that the merger, if approved, would be the launching pad for a float of the new company.

News said this afternoon it welcomed the decision and would work to complete the transaction.