Bell secures competition approval for Astral takeover

News Video Canada 5 MRT 2013
Bell secures competition approval for Astral takeover
Bell Canada had received clearance from competition authorities for its takeover over Astral Media. The transaction also requires approval by the Canadian Radio-television and Telecommunications Commission (CRTC). 

The Competition Bureau's approval is the result of an agreement under which Bell will sell a number of Astral TV services. Bell Media will retain the French-language SuperEcran, CinePop, Canal Vie, Canal D, VRAK TV and Z Tele, and the English-language services The Movie Network, which includes HBO Canada and TMN Encore. The retained channels, along with retained radio and Astral's out-of-home advertising business, represent 77 percent of Astral's EBITDA. 

The divestitures respond to public interest concerns, including TV viewership share, identified by the CRTC in its October 2012 decision rejecting Bell's original application seeking approval of the Astral transaction. Bell's new application to the CRTC was filed in November and later amended to reflect further divestitures. Overall, the divestitures will result in Bell Media having a French-language viewing share of 23.0 percent, below competitor Quebecor's 30.5 percent share. In English-language viewership, Bell Media will have a 35.7 percent share, 2.0 percent more than its current share. 

Under both the consent agreement with the Competition Bureau and the amended filing with the CRTC, Bell has committed to sell the following TV assets: Corus will acquire Astral's share of six TV joint ventures: the bilingual Teletoon/Teletoon service, English-language Teletoon Retro and Cartoon Network (Canada), and French-language Teletoon Retro, Historia and Séries+. Corus will also acquire two Astral radio stations in Ottawa, CKQB-FM and CJOT-FM. Valued at a total of CAD 400.6 million, the Corus transaction is also subject to regulatory approval. 

Bell will also sell the English-language Family (including Disney Junior English) and Disney XD services, and the French-language Disney Junior, Musimax and MusiquePlus services, through an auction process that is now under way. Bell is also divesting 10 English-language radio stations in an auction now under way. 

Bell Media first announced the takeover in March 2012 for CAD 3.38 billion and now expects to close the deal by June. 

Categories:

Video

Companies:

Meo,  Bell Canada,  CRTC,  Astral Media,  Quebecor

Countries:

Canada

Tags:

Regulations, M&A buyouts & divestments

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