The European Commission has waved through Spanish telco Telefonica's proposed takeover of Dutch production company Endemol Entertainment which made headlines across Europe when it was first unveiled in March (Screendaily, March 20).
"Although this operation will integrate Telefonica into the upstream market of production of TV programmes, it will not result in any significant change of the market structure. Consequently, the operation does not raise competition concerns," the Commission said in a statement.
Telefonica launched its formal offer for Endemol last month at a price of Euros4.79bn rather than the Euros5.5bn at which the Dutch company was originally pitched. The buy-out unites Endemol's massive content with Telefonica's varied distribution platforms.
However the Commission said that "given the relatively low market share of Endemol in Spain (23%) and the fact that independent production of TV programs is an open market with no barriers to entry...this will not generate foreclosure effects."