The European Commission cleared media mogul Rupert Murdoch to take over British pay-TV group Sky PLC on Friday, leaving a British investigation into the impact on the nation’s media landscape as the only remaining hurdle for the US$14.5 billion deal.
The commission said the bid did not raise any competition concerns as Murdoch’s Twenty-First Century Fox Inc and Sky are active in different markets in Europe, while rules in EU nations mean that rivals would still have access to Sky films and TV channels.
Fox and Sky welcomed the decision, which was expected, and said they would continue to work with regulators in Britain where it faces a tougher test to complete the deal.
“We now look forward to continuing to work with UK authorities and are confident that the proposed transaction will be approved following a thorough review process,” Fox said.
Analysts had not expected the EU to block the takeover after it approved Murdoch’s previous attempt to take full control of Sky in 2011, a deal that was later derailed by a telephone hacking scandal at his British newspapers that revealed close ties between politicians, police and media.
However, the British government has referred his new attempt to regulators to decide if it is in the public interest in a bid to diffuse political controversy around a deal that would extend Murdoch’s influence in Britain.
The British Office of Communications (OFCOM) is to advise on whether the deal would give Murdoch and his companies too much control of UK media, and whether the new owner would be committed to upholding broadcasting standards.
As part of the investigation, British Secretary of State for Culture, Media and Sport Karen Bradley has also asked OFCOM to assess whether Murdoch’s company is a “fit and proper” holder of a broadcasting license.
Bradley has given OFCOM a 40-day timetable to investigate, and expects to receive its report by May 16.
INVESTOR RESILIENCE? An analyst said that despite near-term pressures, foreign investors tend to view NT dollar strength as a positive signal for valuation multiples Morgan Stanley has flagged a potential 10 percent revenue decline for Taiwan’s tech hardware sector this year, as a sharp appreciation of the New Taiwan dollar begins to dent the earnings power of major exporters. In what appears to be the first such warning from a major foreign brokerage, the US investment bank said the currency’s strength — fueled by foreign capital inflows and expectations of US interest rate cuts — is compressing profit margins for manufacturers with heavy exposure to US dollar-denominated revenues. The local currency has surged about 10 percent against the greenback over the past quarter and yesterday breached
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