Comcast receives Government backing in Sky takeover bid

Comcast Corporation, the US global telecommunications giant, is one step closer in its bid to take over Sky.

The broadcasting and cable television company’s £22bn takeover of Sky will most likely not be referred to Competition and Markets Authority (CMA), the Secretary of State for Digital, Culture, Media and Sport said.

In a statement, Matt Hancock said that the proposed merger didn’t “raise any concerns to public interest considerations.”

This announcement is bad news for 21st Century Fox, which is also trying to buy the company.

Fox, which currently owns 39.1% of Sky, proposed a £17.5bn bid to buy the remaining 61% it does not already own in December 2016. However, this deal has been put under regulatory scrutiny for the past 18 months.

Mr Hancock’s full statement read: “Having reviewed the relevant evidence available, I can confirm that I have today written to the parties to inform them that I am minded not to issue an EIN on the basis that the proposed merger does not raise concerns in relation to public interest considerations which would meet the threshold for intervention.

“This is a quasi-judicial decision and I am required to make my decision independently, following a process that is scrupulously fair and impartial, and as promptly as quickly as possible.

“I will now allow until 5pm on Thursday 24 May for interested parties to submit written representations, and I aim to come to a final decision on whether to intervene in the merger shortly.”

Mr Hancock’s final decision on whether Comcast should face regulatory scrutiny is due early next month.