Disney forced into takeover offer for Sky by United Kingdom authority

Posted April 13, 2018

If that deal doesn't close before Disney's $52.4 billion deal for Fox, then Disney is required to make a mandatory offer for Sky at a price of £10.75 per share.

In the meantime, Disney agreed to buy Fox assets, including its stake in Sky, in a separate deal, which is subject to regulatory clearance. Fox now owns 61% of Sky and is in the process of buying the remaining shares.

Fans haven not heard a lot about Disney's Fox acquisition in recent months, but 21st Century Fox President Peter Rice has finally given an update, in the form of a loose deadline, for when the acquisition will finally take hold.

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Mr Murdoch's family already have extensive media holdings, including stakes in newspapers such as The Sun and The Times.

If the Competition and Markets Authority clears Murdoch's bid and Disney is in turn allowed to complete its Fox deal, then Sky will come under the full ownership of the theme parks-to-films conglomerate. The Group said further advice to its shareholders will be announced in due course. The two parties agreed a £11.7bn deal to buy the shares it does not own in December 2016.

The Takeover Panel said that it considers that securing control of Sky might reasonably be considered to be a significant objective of Disney's acquiring control of Fox assets. Earlier in the month, the company proposed two remedies to address plurality concerns voiced by United Kingdom mergers regulator the Competition & Markets Authority.

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"21CF remains committed to its recommended cash offer for Sky announced on 15th December 2016, which is supported by revised remedies recently offered to the Competition and Markets Authority (CMA) with whom 21CF has been co-operating in order to bring the United Kingdom regulatory process to a swift and satisfactory conclusion", Fox said in a statement.

"The commission has concerns that the companies involved may have violated European Union antitrust rules that prohibit cartels and restrictive business practices", the EU's executive branch said in a statement. It also said that Disney was interested in acquiring Sky News.

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