Brazil antitrust body raises concerns over Disney-Fox deal

FAN Editor
A screen shows the trading info for The Walt Disney Company company on the floor of the NYSE in New York
A screen shows the logo and a ticker symbol for The Walt Disney Company on the floor of the New York Stock Exchange (NYSE) in New York, U.S., December 14, 2017. REUTERS/Brendan McDermid

December 3, 2018

BRASILIA (Reuters) – Brazil’s antitrust regulator Cade said on Monday that a deal by Walt Disney Co <DIS.N> to buy Twenty-First Century Fox’s <FOXA.O> entertainment assets raised concerns about undermining competition in the cable television market.

A Cade report prepared to inform a subsequent ruling by the regulator said the deal would result in “a significant increase in concentration in the market of sports channels on cable TV and a high probability that Disney could control the market.”

This could “potentially reduce the quality and diversity of the sports content available, besides raising costs that could be passed on to consumers,” the report said.

It recommended remedial measures. Cade has until March 23, 2019 to decide and the deadline can be extended for 90 days.

Disney agreed to purchase Fox’s film and television assets for $71.3 billion and has received approval from China and the European Commission earlier this month, subject to certain conditions.

(Reporting by Alberto Alerigi; editing by Anthony Boadle and Grant McCool)

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