The Canadian telecoms regulator approved yesterday the US$1.3bn acquisition of broadcaster CTVglobemedia by BCE, the holding company of Bell Communications.
BCE, which was advised by TD bank and Royal Bank of Canada (RBC), now expects the deal to be…
The Canadian telecoms regulator approved yesterday the US$1.3bn acquisition of broadcaster CTVglobemedia by BCE, the holding company of Bell Communications.
BCE, which was advised by TD bank and Royal Bank of Canada (RBC), now expects the deal to be completed in Q2 2011.
BCE currently owns 15% of CTVgm. It will now be able to acquire the remaining 85% from the company’s other investors, which include the Ontario Teacher’s Plan Board and the Torstar Corporation, a newspaper and book publisher.
The acquisition, which was first announced in September, will give BCE full control of broadcaster CTV and a 15% equity stake in newspaper the Globe and Mail.
CTVgm will now be integrated within a new business unit within BCE known as Bell Media.
In a statement, the Canadian Radio-television and Telecommunications Commission (CRTC) said that Bell would not be able to enter into new exclusive agreements that will restrict it from providing its television programming to other companies that could broadcast them on mobile devices or over the internet.
The CRTC is planning to hold a public hearing in June to determine whether new rules are required for commercial negotiations on exclusivity to broadcasting rights.
Bell will not be allowed to enter exclusivity agreements until then, when new rules could potentially make it impossible.
The issue is becoming increasingly pressing as vertical integration is becoming the dominant pattern in the market.
The BCE-CTV deal follows the acquisition of the broadcasting assets of Canwest Global by satellite broadcaster Shaw Communications in 2010. Shaw also provides internet and fixed-line services.
Cableco Rogers Communications owns the CITY-TV network. The holding company Quebecor owns both TVA, a French-language Canadian broadcaster, and VideoTron, a cable and internet provider.
As part of its approval for the BCE-CTV deal, the CRTC also said that BCE must invest US$245m in initiatives to assist the Canadian broadcasting system.
They will be improving local news programmes in several regions and allowing for the carriage of at least 43 additional television services, including local, regional and community stations.
In a statement, Bell said: “The transaction more than levels the playing field in a marketplace where most of Bell’s competitors are integrated companies offering phone, Internet, wireless and video services and operating significant broadcasting and other media properties.”
