Spain’s watchdog CNMC has conditionally approved Telefonica’s 56% acquisition of local DTH group Canal+ (DTS) after a nine month review.
The market and competition regulator cleared the deal under the condition that Spain’s incumbent telco makes…
Spain’s watchdog CNMC has conditionally approved Telefonica’s 56% acquisition of local DTH group Canal+ (DTS) after a nine month review.
The market and competition regulator cleared the deal under the condition that Spain’s incumbent telco makes 100% of its premium channels available to rivals, including all its football content, CNMC said in a statement. Each competitor would be entitled to 50%.
Furthermore, as part of the agreement, the authority has reduced the telco’s exclusivity period with clients to two years.
Telefonica currently owns 44% of Canal+, also known as Distribuidora de Television Digital. It agreed to buy a 56% stake from media conglomerate Prisa in May for €750m (US$792m), but will reportedly pay €725m (US$779m) because its value has since reduced.
The deal triggered competition concerns – especially from telecoms rivals Orange and Vodafone – because the combined Canal+/Movistar TV (which Telefonica already owns) would control 85% of the market by revenue, and 70% by subscriber numbers.They have demanded that Telefonica resell at least 75% of premium content.
Julio Gomez, head of regulation at Orange Spain, was last week quoted warning that the takeover could “not just affect the TV sector, but also have a negative impact on telecom services competition, leaving rivals with no way of competing with Telefonica”.
Earlier in the month, rumours emerged that Telefonica and Qatari broadcaster Al Jazeera were discussing a possible shared ownership of Canal+ to gain regulatory clearance. An affiliate of Al Jazeera is also reported to be on the verge of buying Turkish satellite broadcaster Digiturk.
The Spanish deal is the first large merger to be approved by the unified regulator in its nearly two years of existence.
