Comcast shares closed higher Friday as the EU gave its unconditional approval to the US media firm’s plan to buy Sky. Among other details, it stated that both businesses were active at different levels of the market and that the deal raised no competition concerns.
Comcast shares ended the US Friday session 0.18% higher at $33.88. The stock has been on a generally upward trend in recent weeks.
EU antitrust approval of Comcast’s Sky purchase plan
The EU competition commission Friday gave its full, unconditional approval of the proposed deal. Something that’s sure to help make the US media business a more attractive option to the UK broadcaster.
“The European Commission has approved unconditionally under the EU Merger Regulation the proposed acquisition of Sky by Comcast, a US based global media, technology and entertainment company,” the competition body said.
“The Commission concluded the transaction would raise no competition concerns in Europe,” it added.
Details of the approval show that it considers Comcast and Sky’s current operations to be mostly active across different areas of European countries.
“The Commission 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,” it said.
Sky welcomes EU approval
The approval means that Comcast has now adhered to all of Sky’s pre-conditions to further discuss the proposed deal.
“The Independent Committee of Sky welcomes today's announcement by the European Commission of its decision to approve unconditionally Comcast's proposed acquisition of Sky under the EU Merger Regulation,” Sky said in response to the EU approval.
“The Independent Committee notes that Comcast has now satisfied all of the pre-conditions outlined in its announcement dated 25 April 2018 and, under Rule 24.1 of the UK Takeover Code, has until Friday 13 July to post its Offer Document to Sky shareholders,” it added.