Liberty Global is expected to file its proposed takeover of German cable operator Kabel BW with the German antitrust authority late this week or early next week, it is understood. This would mark the beginning of an investigation which could possibly…
Liberty Global is expected to file its proposed takeover of German cable operator Kabel BW with the German antitrust authority late this week or early next week, it is understood. This would mark the beginning of an investigation which could possibly take months to conclude.
The deal was initially notified in April this year with the European Commission, which was in charge due to the size of the merging parties. But soon after, the German Federal Cartel Office (FCO) asked the Brussels based regulator to refer the deal, as the target company, Kabel BW, is only active in Germany.
The EC approved the referral request in mid June, and Liberty has since been busy preparing the documents for the filing in Germany, it is understood.
Once filing with the FCO has been made, the regulator has one month for an initial investigation. Observers widely believe that the FCO will launch a three months second phase investigation after expiration of the first phase to allow enough time for a detailed examination of the proposed transaction.
In 2004 the German authority had set a precedent, blocking the merger of cable operators KDG, Ish, Iesy and Kabel BW. Antitrust experts believe however that increased competition from IPTV and digital terrestrial TV as well as the appointment of a new head of the FCO’s telecommunications merger unit in autumn last year might result in the FCO taking a fresh look at mergers of cable operators this time.
