Sky plc (LON:SKY) said today it was “disappointed” by a further delay to its proposed takeover by Rupert Murdoch’s 21st Century Fox Inc. (NASDAQ:FOX.).
Culture secretary Karen Bradley said she needed more time to review submissions opposing the £11.7bn deal.
She had hoped to make a final decision on whether to ask the Competition Markets Authority to investigate Fox’s plans to buy Fox before parliament breaks up for summer on Friday but has received “tens of representations” that needed looking over.
“A final decision can only be made after fully considering all relevant evidence on both the plurality and commitment to broadcasting grounds,” she said.
“Given the consultation only closed on Friday there has not been time to consider all the representations.”
Fox chief executive, James Murdoch, and his brother, Lachlan, who is co-executive chairman with his father Rupert, have argued that Bradley has as duty to expedite referring the deal to CMA before the parliamentary hiatus. The summer break runs until 5 September.
Bradley said she is still “minded” to refer Fox’s bid to the CMS for its Phase 2 investigation. However, she said she would consider whether to ask the watchdog to examine whether the Murdochs will adhere to broadcasting standards in the UK.
The CMA is likely to take up to six months carrying out its investigation.
Sky responds to the hold up in Fox takeover plans
Sky responded to the delay in a statement, saying: "Businesses require a level of certainty in order to plan and invest.
"As such, we are disappointed by this further delay. Almost eight months have now elapsed since the announcement of the offer, with decisions to clear the transaction received from all other relevant regulatory authorities, including the European Commission and the relevant authorities in all four of the other main jurisdictions in which we operate.”
Ofcom carried out the first stage of the probe but the media regulator said it found no grounds to ask the CMA to look at issues, including concerns surrounding the phone hacking scandal and a sexual harassment case at Fox News
Ed Miliband and Vince Cable lobby to block Sky-Fox deal
Critics of the deal include Ed Miliband and Vince Cable, who have argued that Ofcom’s guidance was wrong and asked Bradley to block the deal.
In a letter, the company’s legal advisers, Allen & Overy, said that agreeing to the MPs' demands would "constitute the most blatant form of political interference".
Fox believes its takeover of Sky would represent a significant investment into the UK.
"In light of the transaction's benefits to the UK creative economy, we would urge the Secretary of State to complete the regulatory process expeditiously,” it said in a statement.