The ACCC has decided to not oppose the proposed merger of Fox Sports and Foxtel after finding the transaction would not substantially lessen competition.
Currently, News Corporation (News) (ASX:NWS) owns 100 per cent of Fox Sports and owns Foxtel jointly with Telstra (ASX:TLS). Under the merger, Foxtel and Fox Sports will be brought together under common ownership, with News holding 65 per cent of the merged entity. Telstra will hold the remaining 35 per cent interest. The merged entity will also enter a number of agreements with Telstra.