The Australian Competition and Consumer Commission (ACCC) has announced it will oppose the proposed acquisition by Seven Group Holdings of Consolidated Media Holdings (CMH).

 

The move by the watchdog will see Seven unable to buy a majority stake in the group, of which it currently owns just over 25 per cent of, while owning 33 per cent of the shares in Seven West Media.

 

CMH, which is 50 per cent owned by James Packer, holds a majority stake in Fox Sports Australia and, indirectly, 25 per cent of FOXTEL.

 

The ACCC has objected to the planned bid on the grounds that the purchase would give Seven substantial interests in both a major free to air network and in the country’s largest subscription television company.

 

“The ACCC is concerned that the proposed acquisition would put Seven Network in a position of advantage over other free to air networks in relation to joint bids and other commercial arrangements with FOX SPORTS for the acquisition of sports rights. Being able to come to such arrangements with FOX SPORTS would enhance Seven Network’s ability to acquire the rights to premium sports,” ACCC Chairman Rod Sims said.

 

“Access to premium sporting content is vital to the ability of free to air networks to compete strongly. The ACCC considers that the proposed acquisition would significantly reduce the ability of Seven Network’s competitors to acquire such content,” he added.

 

The announcement paves the way for News Limited to complete it’s $2 billion planned takeover of CMH, which Seven Group has announced it will now support.