(Adds Liberty spokesman on majority approval)
By Vanessa Mock
BRUSSELS--Europe's biggest cable operator Liberty Global Inc
(LBTYA) received the green light Monday for its 17.2 billion euros
($22.5 billion) acquisition of Virgin Media Inc., the U.K.'s second
largest pay-TV operator, after the European Union said the
acquisition raised no competition concerns.
Market analysts said the Virgin Media deal will likely reinforce
Liberty Global's challenge against BSkyB, the UK.'s top pay-TV
provider, owned by Rupert Murdoch. News Corp. (NWS), which owns The
Wall Street Journal, is BSkyB's largest shareholder, with a 39.1%
stake.
The European Commission, which acts as the EU's antitrust
watchdog, said the companies operate cable networks in different EU
countries, and that the merged entity would have only a limited
market position in the wholesale of TV channels in the U.K. and
Ireland.
Liberty Global said the transaction was still subject to
majority approval from both shareholders. "The respective
shareholder meetings, as well as the closing of the transaction,
are expected to occur in the second quarter of 2013," said Marcus
Smith, a spokesman for the company.
In its review, the commission said it had looked into the TV
content acquisition sector in the U.K., Ireland and the European
Economic Area as a whole. It also investigated the vertical link
between Liberty Global's activities in the wholesale supply of
pay-TV channels, it said.
"It is unlikely that the merged entity would shut out competing
TV channel broadcasters from access to the retail Pay TV market,
given the number of alternative distribution platforms to Virgin
Media's cable network (e.g. BSkyB's satellite platform) and the
importance of offering a large variety of TV channels in order to
attract Pay TV subscribers," the commission said in its
statement.
Liberty Global provides TV, broadband internet and telephony
services in 10 EU countries but not in the U.K. Its brands include
Telenet Group Holding NV (TLGHY), Unitymedia and UPC. Liberty
Global also produces and supplies a number of TV channels to TV
operators in the U.K. through its content division Chellomedia.
Virgin Media owns and operates a cable network in the U.K.,
offering pay-TV, broadband internet and telephony services.
Write to Vanessa Mock at vanessa.mock@dowjones.com
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