Govt permits News Corp and BSkyB merger
A merger between BSkyB and News Corporation has been accepted by the government.
Merger and acquisition consultants working alongside News Corporation appear set to be given the go ahead to complete the firm's takeover of BSkyB, it has emerged.
Secretary of state for culture, Olympics, media and sport Jeremy Hunt has today (June 30th) published the results of a consultation conducted on the details of the proposed deal earlier this year.
And the official noted that bodies such as Ofcom and the Office of Fair Trading have advised him that the agreement can be permitted as it will not have an overly-adverse effect on media plurality in the UK.
Concerns had been raised by these regulators, as well as the government itself, with regard to how News Corp - which already holds a stake of around 40 per cent in BSkyB - completely owning the company would impact the market.
However, after coming up with undertakings such as the presence of an independent director on the company's board, the authorities are now satisfied that the merger can go through.
Posted by Ken Hayes