CADE due to issue ruling on mega-merger on Wednesday, according to local press
Brazil’s antitrust authority will approve AT&T’s planned takeover of Time Warner later this week, it emerged on Monday.
The Conselho Administrativo de Defesa Econômica (CADE) will set conditions on the proposed US$85.4 billion deal, but will give it the green light on Wednesday, Reuters reported, citing Brazilian newspaper Valor Economico.
Telecoms regulator Anatel passed the deal over to CADE in June, and the watchdog in August announced it was unable to approve the deal for competition reasons and handed it over to a tribunal. The watchdog said the merged entity would have the power to harm competition in both the pay TV and content markets.
The report did not elaborate on what conditions CADE might seek to impose on the merger.
However, a month ago, Reuters reported that AT&T is looking to sell off certain Latin American TV assets, including operations in Brazil, a move that would doubtless go some way to appeasing the authorities there.
CADE declined to comment on Monday’s newspaper report, Reuters said, but confirmed that the deal is on its agenda for a meeting on Wednesday.
It has the power to issue a final decision at that meeting.
However, the deal will also require the go-ahead from Anatel.
AT&T and Time Warner have secured the approval of regulators in many jurisdictions, including Mexico, Chile and the European Union.
They aim to close the transaction by the end of this year.