Fox’s Sky deal gets EC approval

21st Century Fox has received the green light from the European Commission (EC)’s competition authorities to take full control of European satcaster Sky.

Rupert Murdoch

The EC said it approved the deal “unconditionally” and added that its market investigation had found the proposed transaction “would raise no competition concerns.”

Both companies are controlled by media mogul Rupert Murdoch, however the £11.7bn (US$14.8bn) deal must still be given the go-ahead by UK media regulator Ofcom.

UK culture secretary Karen Bradley referred the transaction to Ofcom last month to investigate potential public interest concerns.

Ofcom has until May 16 to make a decision and has set a deadline of March 30 for submissions relating to the deal. Bradley could give the deal the all-clear or raise concerns, which Fox will then have to address.

If the deal goes ahead, Rupert Murdoch will have full control of Sky as well as the UK newspapers that come under his News Corp business, including The Times, The Sunday Times and the Sun.

Concerns will also focus on the company’s corporate governance and particularly on James Murdoch, who oversees 21st Century Fox and has served as Sky’s chairman since January.

James Murdoch

He previously worked across the parent company’s newspapers but has lacked widespread shareholder support at Sky of late, which meant he needed Fox’s support to return him to his position in October.

Sky agreed to sell the remaining 61% of its business not owned by Fox late last year, following a previous attempt aborted in 2011 by Rupert Murdoch after the phone-hacking scandal that hit his UK newspaper empire.

Leading analysts have previously said Fox is likely to succeed in the takeover, with programme licensing and development “synergies” at the heart of the deal.

However, rival broadcasters, media pressure groups and politicians are also stepping up efforts to stop the deal, fearing it would hand too much buying power to Rupert Murdoch.