The Australian Competition and Consumer Commission (ACCC) has cited concerns of competition in the A$2.5 billion bid made by News Corp. (NWS,NWSA) affiliate Foxtel Management Pty Ltd. for Austar United Communications Limited. (AUN.AX). Austar stock is falling nearly 15 percent.
The ACCC said its preliminary view is that the proposed deal is likely to significantly reduce competition in the national market for the supply of subscription television services as well as the acquisition of audio visual content. The body is also of the view that the deal may lead to reduced competition in several markets for the supply of telecommunications products.
Foxtel is Australia's largest subscription television provider and has over 1.63 million subscribing households. Telstra Corp. (TLSYY.PK, TLS.AX) has a 50 percent stake in the company and News Corp and Consolidated Media Holdings have a 25 percent holding each.
Liberty Global, Inc. (LBTYA, LBTYB, LBTYK) holds an indirect majority inteerst of 54.2 percent in Austar, which has 760,000 subscribers.
"FOXTEL and Austar are the only significant providers of subscription television services in Australia. The proposed merger would therefore effectively create a near monopoly subscription television provider across Australia," the ACCC said in a statement.
Meanwhile, reports said the ACCC's decision was not influenced by the recent phone hacking scandal that has engulfed News Corp.
AUN.AX is currently trading at A$1.09, down A$0.20 or 15.83 percent, on 33.31 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.