--News Corp. seeking to buy Consolidated Media for A$1.97
billion
-- Regulator says deal unlikely to lead to substantial lessening
of competition
(Adds background from fourth paragraph, additional regulator
comment in seventh)
By Gavin Lower
MELBOURNE--The Australian Competition and Consumer Commission
said Thursday it won't oppose News Corp.'s (NWS.AU) 1.97 billion
Australian dollar (US$2.06 billion) bid for media-investment
company Consolidated Media Holdings Ltd. (CMJ.AU).
Consolidated Media owns 25% of Australia's largest
pay-television company Foxtel and 50% of sports channel Fox Sports.
News Corp. also owns 25% of Foxtel and the other 50% of Fox
Sports.
"The ACCC's view is that this acquisition is unlikely to lead to
a substantial lessening of competition in any relevant market,"
ACCC chairman Rod Sims said in a statement. News Corp. lobbed its
bid for the company, which would strengthen its pay-TV presence in
Australia, in June.
Australian casino mogul James Packer, whose Consolidated Press
Holdings owns 50% of Consolidated Media, has previously welcomed
the bid, and said News Corp.'s A$3.50 a share bid was "fair."
The deal is also dependent on Consolidated Media's other major
shareholder, the Kerry Stokes-controlled Seven Group Holdings Ltd.
(SVW.AU), which owns 24% of the company.
Seven has asked the ACCC to consider its own proposal to acquire
Consolidated Media, which the ACCC is currently assessing.
Mr. Sims said in Thursday's statement that given News Corp. had
no interests in other free-to-air or pay-TV entities in Australia,
the ACCC considered the proposed acquisition "was unlikely to
materially change News Corporation's incentives in relation to the
supply of content in Australia."
News Corp. is the owner of this newswire and The Wall Street
Journal.
Write to Gavin Lower at gavin.lower@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires