Mexican Federal Telecommunications Institute approves purchase and sale agreement for Fox Sports Mexico
The Plenary of the Federal Telecommunications Institute (IFT) approved the purchase and sale agreement of Fox Sports shares in Mexico, which is one of the conditions imposed to allow the concentration between Disney and Fox in the country.
"The sale of the Fox Sports business in Mexico results from the conditions imposed by the Plenary of the Institute to Disney and 21CF on March 11, 2019, among which is the sale of the Fox Sports business in Mexico to a third party independent of Disney/21CF," details the regulator in a statement.
The sale should be in viable and competitive terms to avoid risks in the relevant market for the provision and licensing of audiovisual content such as programming channels, channel packages, and programs; to restricted television and audio service providers (STAR), in the programmatic category of Sports.
"In this regard, the Plenary approved yesterday the share purchase agreement presented by the Disincorporation Agent on May 21, 2021."
The company that acquired the channels is independent of Disney-Fox and the persons belonging to its economic interest group and has not had a previous business relationship with the companies that would jeopardize the object of the disincorporation and/or the process of competition and free concurrence in this relevant market and related ones.
In addition, it has the financial capacity and incentives to acquire and operate the Fox Sports business in Mexico and to compete independently in the relevant market in a viable and competitive manner.
"In the event that it acquires the Fox Sports business in Mexico, this does not generate concentration phenomena contrary to the public interest or competition risks in the relevant and related markets," the IFT adds.