RTL wins unconditional EU antitrust approval for Sky Deutschland acquisition

RTL Wins EU Antitrust Approval for Sky Deutschland Acquisition and Expansion

EU Approval and Implications for the Media Landscape

By Foo Yun Chee and Klaus Lauer

Overview of the Acquisition

BRUSSELS/BERLIN, April 22 (Reuters) - European broadcaster RTL secured unconditional EU antitrust approval for its Sky Deutschland acquisition on Wednesday after regulators said the deal would not pose any competition concerns in Europe.

Strategic Benefits for RTL

The deal would give RTL, which is majority-owned by German media group Bertelsmann, local access to Sky's premium sports rights including Bundesliga and Premier League soccer, and Formula 1 motor racing, and Sky's WOW streaming service.

Competitive Positioning Against Global Rivals

The combination of two of Europe's strongest media offerings in sport and entertainment would help RTL better compete with U.S. heavyweights Netflix, Disney and Amazon Prime in Germany.

Regulatory Review and Outcome

The European Commission, which acts as the EU competition enforcer, said remedies offered by RTL last month which included outsourcing advertising sales to third parties, were not necessary.

"We looked carefully at this deal, and ultimately found no evidence that this acquisition would raise any competition concerns," EU antitrust chief Teresa Ribera said in a statement.

Industry Impact and Future Outlook

"The transaction will allow well-established European media groups to consolidate their position at a time when the industry is transforming, and they are facing increasing pressure from global streaming platforms," she said.

Reuters reported last month that the deal would gain early EU antitrust approval.

Reforms in EU Merger Rules

Ribera is currently revamping EU merger rules to allow European companies to scale up when possible so they can challenge U.S. and Chinese rivals.

(Reporting by Foo Yun Chee, editing by Inti Landauro)