The Fair Trade Commission (FTC) announced yesterday it would extend its review of Taiwan Mobile Co’s (台灣大哥大) planned acquisition of a majority stake in Kbro Co (凱擘) for another 30 days because the deal would have a significant impact on competition.
Kbro is the nation’s No. 2 cable TV system operator, with 12 networks and about 1.1 million subscribers as of June.
“Because this deal is an important case that involves both digital convergence and fair competition, the commission decided to extend the review period,” the commission said in a statement.
The commission will hold meetings with academics, industry representatives and other government agencies before reaching a final decision, the statement said.
Taiwan Mobile, the nation’s second-largest telecom operator, announced on Sept. 16 that it planned to purchase the Carlyle Group’s holding in Kbro for NT$32.8 billion (US$1 billion).
It submitted its application to the commission on Sept. 22, saying it hoped the commission would green-light its bid soon.
If the deal is approved, Taiwan Mobile will have 1.6 million cable TV subscribers, or about 34.8 percent of the nation’s 4.6 million cable TV subscribers.
The deal, however, is also subject to approval by the Investment Commission and the National Communications Commission (NCC).
The NCC, which has yet to give the FTC its views on the deal, is reportedly concerned the purchase would give Taiwan Mobile a one-third share of the cable TV market.
Taiwanese suppliers to Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) are expected to follow the contract chipmaker’s step to invest in the US, but their relocation may be seven to eight years away, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. When asked by opposition Chinese Nationalist Party (KMT) Legislator Niu Hsu-ting (牛煦庭) in the legislature about growing concerns that TSMC’s huge investments in the US will prompt its suppliers to follow suit, Kuo said based on the chipmaker’s current limited production volume, it is unlikely to lead its supply chain to go there for now. “Unless TSMC completes its planned six
Power supply and electronic components maker Delta Electronics Inc (台達電) yesterday said second-quarter revenue is expected to surpass the first quarter, which rose 30 percent year-on-year to NT$118.92 billion (US$3.71 billion). Revenue this quarter is likely to grow, as US clients have front-loaded orders ahead of US President Donald Trump’s planned tariffs on Taiwanese goods, Delta chairman Ping Cheng (鄭平) said at an earnings conference in Taipei, referring to the 90-day pause in tariff implementation Trump announced on April 9. While situations in the third and fourth quarters remain unclear, “We will not halt our long-term deployments and do not plan to
‘SHORT TERM’: The local currency would likely remain strong in the near term, driven by anticipated US trade pressure, capital inflows and expectations of a US Fed rate cut The US dollar is expected to fall below NT$30 in the near term, as traders anticipate increased pressure from Washington for Taiwan to allow the New Taiwan dollar to appreciate, Cathay United Bank (國泰世華銀行) chief economist Lin Chi-chao (林啟超) said. Following a sharp drop in the greenback against the NT dollar on Friday, Lin told the Central News Agency that the local currency is likely to remain strong in the short term, driven in part by market psychology surrounding anticipated US policy pressure. On Friday, the US dollar fell NT$0.953, or 3.07 percent, closing at NT$31.064 — its lowest level since Jan.
The New Taiwan dollar and Taiwanese stocks surged on signs that trade tensions between the world’s top two economies might start easing and as US tech earnings boosted the outlook of the nation’s semiconductor exports. The NT dollar strengthened as much as 3.8 percent versus the US dollar to 30.815, the biggest intraday gain since January 2011, closing at NT$31.064. The benchmark TAIEX jumped 2.73 percent to outperform the region’s equity gauges. Outlook for global trade improved after China said it is assessing possible trade talks with the US, providing a boost for the nation’s currency and shares. As the NT dollar
RSS