News Corp’s Sky takeover bid gets the green light from the EU

The European Commission has unconditionally approved News Corp’s bid to acquire BSkyB.

In a statement, Joaquin Almunia, EU Competition Commissioner, said: “I am confident that this merger will not weaken competition in the United Kingdom. The effects on media plurality are a matter for the UK authorities.”

The Rupert Murdoch-owned company wants to by the 61% of the pay-TV operator that is does not already own for £7.8 billion. However, independent directors at BSkyB, which operates the 24-hour channel Sky News and provides pay-TV, broadband and telephony services, have rejected News Corp’s offer as too low.

News Corp officially notified the European Commission of its planned takeover bid on 3 November. The commission conducted an initial investigation before responding today.  The statement did not refer to concessions offered by the News Corp earlier this month, indicating that it had not accepted them.

Ofcom will now examine the deal to investigate media plurality issues in the UK, focusing on content types, audiences, media platforms, control of media enterprise and future developments in the media landscape. The media regulator is expected to report back to business secretary Vince Cable by 31 December.

Cable will then decide whether to refer the issue to the Competition Commission.

BSkyB’s shares were up 0.5% at 737 pence by lunch time today.