Fox/Disney could be rejected by CADE – reported rumor
The Walt Disney Company’s [NYSE:DIS] acquisition of Twenty-First Century Fox [NASDAQ:FOXA] could be rejected by Brazil’s competition authority CADE, Veja reported on 29 December, without citing sources.
The merger is at risk in Brazil, the Portuguese-language item said. CADE has recently postponed the hearing in which it was going to review the merger because commissioners did not reach a consensus on the matter.
The problem with the deal is the sports sector, according to the report. Disney owns the ESPN channels and Fox has its own sports channels. CADE staff has recommended the rejection of the deal, the item said.
As reported, on 3 December CADE’s General Superintendent’s Office recommended the approval of the deal with restrictions, citing competition problems in the pay-TV sports channel market.