Australian Regulator Allows Foxtel's A$1.9 Billion Takeover Of Austar

Australia's competition watchdog said Tuesday it won't oppose pay television company Foxtel's 1.9 billion Australian dollar (US$1.96 billion) takeover of fellow pay television company Austar United Communications Ltd. (AUN.AU).

The Australian Competition and Consumer Commission said in a statement it wouldn't oppose the deal after Foxtel provided court-enforceable undertakings that will prevent Foxtel from acquiring exclusive internet protocol television rights for a range of television programs and movie content.

"Taking into account the undertaking which has been offered by Foxtel, the ACCC is satisfied that the proposed acquisition is unlikely to substantially lessen competition," ACCC Chairman Rod Sims said.

"By reducing content exclusivity, the undertakings will lower barriers to entry and promote new and effective competition in metropolitan and regional telecommunications and subscription television markets," he said.

Foxtel is 50% owned by Telstra Corp. (TLS.AU) and 25% each by Consolidated Media Holdings Ltd. (CMJ.AU) and News Corp. (NWS), the owner of Dow Jones Newswires and The Wall Street Journal.

-By Gavin Lower, Dow Jones Newswires; 61-3-9292-2095; [e-mail]