Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

ComCom declines merger over competition fears

Thursday 23 February 2017 08:48 AM

FIRST CUT: ComCom declines Sky TV/Vodafone merger over competition fears

Feb. 23 (BusinessDesk) - The Commerce Commission has rejected an application by Sky Network Television and Vodafone New Zealand to merge their businesses over fears it would stifle competition, with a key factor being its ownership of premium sports content.

The commission wasn't satisfied the deal would not be likely to substantially lessen competition in any market in New Zealand. Since issuing a letter of unresolved issues last October highlighting its concerns, subsequent submissions hadn't allayed those fears and the commission has "not been able to exclude the real chance that the merger would substantially lessen competition," it said in a statement.

The key issue was the merged entity's ownership of premium sports, such as New Zealand's rugby broadcast rights.

Sky and Vodafone want to create the country's largest telecommunications and media group, with Sky TV buying Vodafone NZ for $3.44 billion, funded by a payment of $1.25 billion in cash and the issue of new Sky TV shares at a price of $5.40 per share. Vodafone would have become a 51 percent majority shareholder in Sky TV, in what amounted to a reverse takeover. The pay-TV operator planned to borrow $1.8 billion from Vodafone to fund the purchase, repay existing debt and use for working capital.

(BusinessDesk)

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

NZ's Space Programme: Rocket Lab Makes It To Space (But Not Orbit)

Electron lifted-off at 16:20 NZST from Rocket Lab Launch Complex 1 on the Mahia Peninsula in New Zealand. It was the first orbital-class rocket launched from from a private launch site in the world. More>>

ALSO:

Earlier:

Budget: Irrigate (Good Times, Come On!)

Additional grant funding of $26.7 million over the next three years plus a capital boost of $63 million towards irrigation investments in Budget 2017 will deliver economic and environmental benefits through better use of water... More>>

ALSO:

Silver Fern Farms: Proposal To Close Fairton Sheepmeat Plant

Silver Fern Farms has advised its people of the proposal to permanently close the site, and has discussed potential transfer options to its other sites in the region as part of the consultation process...
More>>

ALSO:

MPI: Myrtle Rust Appears In Taranaki

The nursery in Waitara (just north of New Plymouth) reported suspected myrtle rust symptoms on young plants to the Ministry’s 0800 number yesterday (Tuesday). More>>

ALSO: