Vivendi Given Clearance For BSkyB Stake

The Competition Commission has allowed the acquisition by Vivendi of a minority stake in BSkyB (see Vivendi Raises Stake In BSkyB To 25%). The decision was announced yesterday by the Secretary of State for Trade and Industry, Stephen Byers, who had referred the case to the commission last year (see Cable & Wireless Communications “Disappointed” By Stephen Byers Move).

It has been decided that the merger will not operate against the public interest, giving Vivendi the go ahead to buy a 24% stake in the satellite broadcaster. Concerns had previously been raised that the acquisition of sport and film broadcasting rights could be affected by the merger.

Last year merger talks between BSkyB and French pay-TV business Canal Plus, in which Vivendi has a stake, collapsed (see Murdoch Rules Out BSkyB/Canal Plus Merger). However yesterday BSkyB stated that it “welcomed Vivendi as an investor”.