Fox’s Sky bid: scrutiny starts
AMERICAN movie-maker 21st Century Fox yesterday triggered the start of a regulatory screening of its £11.7billion bid to take full control of satellite broadcaster Sky and expressed its confidence the “compelling” deal will win approval.
Rupert Murdoch’s Fox kickstarted the process after notifying the European Commission, which will now have 30 days to make a preliminary decision.
Its £10.75 per share offer for the 61 per cent of Sky it does not already own - valuing the FTSE 100 broadcaster at £18.5billion, was recommended last December, with Fox anticipating the acquisition will complete before the end of 2017.
The commission referred the deal to the UK’s culture, media and sport secretary, Karen Bradley, who said she was “minded to” refer it to media watchdog Ofcom due to concerns over competition and broadcasting standards.
Sky is chaired by Murdoch’s son James, pictured, who is also chief executive of Fox. His re-appointment sparked a rebellion by some Sky investors over corporate governance.
Bradley said she had not taken a final decision on whether to intervene and hoped to do so within 10 working days.
European regulators are likely to clear the takeover because they previously gave the go-ahead for an attempt by Fox’s then owner News Corporation to take full control of Sky in 2010 before that deal was abandoned.
If asked to look at the deal, Ofcom will carry out a public interest test on the deal and report back within 40 days. If there are no concerns, Bradley must clear the takeover. If concerns are raised, Bradley will then have to decide whether to accept undertakings from Fox to address them.
James Murdoch has already said he does not believe any “meaningful concessions” will need to be made this time.
A Fox spokesman said: “We note the statement issued by the Secretary of State following formal notification of the proposed transaction.
“As we have previously indicated, we anticipate regulators will undertake a thorough review of the transaction, and we look forward to engaging with them as appropriate.
“We believe the combination of 21st Century Fox and Sky will create a company best suited to compete in a rapidly evolving industry, and are confident that the transaction will be approved based on a compelling fact set.”