ACCC approves Foxtel’s acquisition of Austar
10 Apr 2012
Australian Competition and Consumer Commission (ACCC) said it would not oppose Foxtel's acquisition of Austar after accepting a list of undertakings from Foxtel designed to allay competition fears.
Pay TV operator Foxtel was given the green signal for takeover of regional rival Austar United Communications after receiving the competition watchdog's approval for the $2 billion deal.
The ACCC today said it was not opposed to the deal after accepting court-enforceable undertakings from Foxtel.
Austar shares were up in early trading, adding as much as 4 cents, or 2.7 per cent, to $1.52 and have risen about 27 per cent in 2012. They are at their highest since February 2008.
Foxtel is prevented from buying exclusive internet television protocol (IPTV) rights for a range of TV shows and movies.
The company is banned from exclusively buying any movies delivered on a transactional video-on-demand basis.
The pay TV giant is also prevented from buying exclusive mobile rights to TV shows and movies where these are sought by its competitors to combine with IPTV rights.
With the ACCC nod, the company has cleared the last hurdle after Austar shareholders last month voted to approve the deal.
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