EC clears Telenet/De Vijver deal with conditions

Belgian cableco Telenet’s €58m (US$78.5m) acquisition of Flemish broadcaster De Vijver Media agreed last June has now received approval from the European Commission.
The vertical play is part of Telenet parent Liberty Global’s broader strategy to…

Belgian cableco Telenet’s €58m (US$78.5m) acquisition of Flemish broadcaster De Vijver Media agreed last June has now received approval from the European Commission.

The vertical play is part of Telenet parent Liberty Global’s broader strategy to invest in content and mesh that with its cable operations.

The Commission was concerned that the transaction could lead to Telenet refusing to license De Vijver’s two main TV channels to its rival distributors.

In response, Telenet has pledged to grant access to Vier and Vijf – two of Flanders’ most popular Dutch-language free-to-air channels – to other companies “under fair, reasonable and non-discriminatory terms”, according to a statement from the EC.

The antitrust regulator decided that Telenet’s rivals must have access to the channels in order to compete on an equal footing. The EC also found that it would be profitable for Telenet and De Vijver to withhold Vier and Vijf from competitors such as Belgacom and TV Vlaanderen, which would hinder competition if it came to pass, the regulator said.

In addition, Telenet has promised to licence any new basic pay-TV channel that De Vijver may launch in the future, and to license linked services to distributors such as catch-up TV and personal video recording. The commitments will be in place for seven years.

Telenet and De Vijver are now free to complete the transaction, which is expected to close in the coming days.

In a statement John Porter, Telenet CEO, said: “We worked constructively with the European Commission during the investigation and had the greatest confidence that the deal would be approved.”

In June 2014 it was announced that Telenet has struck a deal to acquire 50% of Flemish broadcast company De Vijver Media, indirectly acquiring Finnish group Sanoma’s 33.3% stake in the TV network for €26m and injecting €32m into the business in exchange for stock.

The remaining 50% of De Vijver is split between its CEO, Wouter Vandenhaute, and his business partner Erik Watte, who own 25% through their company W&W, and local media group Corelio, which holds the final 25%.