FILE PHOTO: The Twenty-First Century Fox Studios flag flies over the company building in Los Angeles, California U.S. November 6, 2017. REUTERS/Lucy Nicholson
November 13, 2019
SAO PAULO (Reuters) – Brazil’s antitrust regulator said on Wednesday it will reassess Walt Disney Co’s (DIS.N) $71 billion purchase of Twenty-First Century Fox (FOXA.O) because the divestiture requested by the regulator as a condition for the merger of U.S. media companies has not happened yet.
“The deal approved in February was contingent on the sale of the Fox Sports channel. As the sale was not finalized, the case will be re-examined,” the regulator known as ‘Cade’ said in a statement.
The regulator said it requested the sale of Fox Sports to maintain the same level of competition in the Brazilian market after the deal, with three different sports options: SporTV, ESPN and the service provided by a new company with the Fox assets.
The companies “tried” to comply with the request, but had not succeeded, the regulator said.
Cade head Alexandre Barreto said the reassessment will consider “other options,” without giving details.
The original decision in Brazil was similar to one by the Mexican telecoms regulator IFT, which also requested in March the sale of Fox sports channels in the country.
(Reporting by Tatiana Bautzer; Writing by Jamie McGeever; Editing by Bill Berkrot)
