EU Almunia Indicates Approval for Liberty Takeover of Ziggo -- Update

By Tom Fairless

FLORENCE, Italy--The European Union's antitrust chief said he doesn't expect to block any more mergers before he leaves office at the end of October, and indicating that his department is set to approve Liberty Global PLC's (LBTYA) 4.9 billion euro ($6.3 billion) takeover of Dutch cable operator Ziggo NV (ZIGGO.AE).

"I don't expect any other negative decisions (on mergers) until the end of October," Joaquin Almunia said Friday in a speech in this Italian city.

Mr. Almunia also said the European Commission was pressing ahead with its investigation into whether Russian energy giant OAO Gazprom (GAZP.RS) is harming competition in Central and Eastern European gas markets.

The commission, which acts as the EU's central antitrust authority, opened a detailed investigation of Liberty's purchase of Ziggo in May, saying that the deal could increase the merged entity's negotiation power towards content owners and television channel suppliers. A decision on the case is due by Nov. 3.

The commission is also reviewing Facebook Inc.'s (FB) $19 billion purchase of messaging system WhatsApp. Mr. Almunia is due to decide by Oct. 3 whether to approve the deal or open a more detailed investigation if he sees potential risks to competition. The latter course would likely leave a final decision to Mr. Almunia's successor, former Danish economy minister Margrethe Vestager.

Regarding the commission probe into OAO Gazprom, Mr. Almunia said, "The investigation will not stop."

When it opened a formal investigation two years ago, the commission said Gazprom may have hindered the free flow of gas across EU countries, prevented the diversification of gas supply, and imposed unfair prices on its customers by linking the price of gas to oil prices.

Gazprom approached the commissioner earlier this year to discuss a possible settlement with the EU, but those talks were suspended due to the upheaval in the Ukraine, Mr. Almunia said.

Write to Tom Fairless at [e-mail]

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