European Commission clears 21st Century Fox bid for Sky

The European Commission has cleared Twenty-First Century Fox's proposed acquisition of Sky - both of which are controlled by Rupert Murdoch - saying the deal would raise no competition concerns in Europe.

The EC noted that Fox and Sky are mainly active in different markets in Austria, Germany, Ireland, Italy and the UK. It said they compete with each other only to a limited extent, mainly in the acquisition of TV content and in the wholesale supply of basic pay-TV channels.

It found that the proposed transaction would lead to only a limited increase in Sky's existing share of the markets for the acquisition of TV content as well as in the market for the wholesale supply of TV channels in the relevant member states.

Although the bid has also won unconditional antitrust approval from European authorities, regulatory challenges remain in the UK, as Culture Secretary Karen Bradley has said she wants to order an Ofcom investigation into the deal.

Fox, which already owns 39.1% of Sky, has offered £10.75 a share in cash, valuing the deal at £11.7bn.

The European Commission said UK authorities now have until 16 May to investigate and report on whether the proposed transaction is, or may be, against the public interest of ensuring a sufficient number of people in control of media enterprises.

At 1550 BST, Sky shares were up 0.5% to 967.00p.