The Australian Competition and Consumer Commission (ACCC) has announced that it will oppose the proposed acquisition by Seven Group Holding’s (Seven) of Consolidated Media Holdings (CMH). Seven had proposed to acquire the balance of shares it does not already own in CMH.
Seven owns 25.3% of CMH shares and 33% of shares in the Seven Network. CMH owns 50% of FOX SPORTS Australia (FOX SPORTS) and, indirectly, 25% of FOXTEL.
The ACCC found that:
The proposed acquisition would lead to Seven having substantial interests in a major free to air network and the largest subscription television company in Australia, as well as a 50% shareholding in the company involved in the acquisition of the rights to the majority of Australian sports that are broadcast by FOXTEL.
The ACCC concluded that the proposed acquisition is likely to result in a substantial lessening of competition in the market for free to air television services, and denied Seven’s application for approval on that basis.
You can find more information on the ACCC’s finding here.