EC gives nod to Sky deal as FTSE tumbles

Market report Scott Reid

European regulators gave the green light to

Comcast’s £22 billion bid for Sky, helping fuel a bidding war with Rupert Murdoch’s 21st Century Fox.

The European Commission yesterday gave its unconditional approval to Comcast’s proposed acquisition of the UK broadcaster, concluding that it would “raise no competition concerns in Europe”.

Comcast welcomed the news and said that it will now publish an offer document “in due course” that will include full terms and conditions of the deal.

The approval will likely fuel a bidding war with 21st Century Fox, which has launched its own £11.7bn takeover bid for the 61 per cent of Sky it does not already own.

In a response statement released late into the trading session, Sky said that “a further announcement will be made as and when appropriate”. Shares in the broadcaster dipped 13p or about 1 per cent to close at 1,337p.

The benchmark FTSE 100 index ended the day 131.88 points or 1.7 per cent weaker at 7,633.91.

David Madden, market analyst at CMC Markets UK, said: “Equity markets have come under pressure from the US’S latest announcement to impose tariffs on Chinese goods. Investors are getting nervous as the US and China have stepped one foot closer to a trade war.

“Tesco shares are in demand after the company posted respectable first-quarter UK sales figures. The stock hit its highest level in nearly four years, and if the bullish move continues it could target 280p.”

Tesco shares rose 2 per cent or 5p to 254.8p.