Culture secretary says the government won’t interfere with Comcast’s bid for Sky

The competition watchdog had raised concerns over a previous attempt by Rupert Murdoch to take over Sky

Comcast's offer has thrown a spanner in the works for 21st Century Fox (REUTERS)

Culture secretary Matt Hancock said he is minded not to intervene in Comcast’s proposed takeover of Sky.

US cable giant Comcast made its offer for Sky in February, hoping to beat rival 21st Century Fox in its attempt to take over the company.

After Comcast made its £12.50 per share offer, Sky withdrew its recommendation that shareholders approve Fox’s £10.75 per share bid.

In December 2016, Fox agreed to buy the 61 per cent of Sky that it does not already own. However, the Competition and Markets Authority then said it had provisionally found that such a deal would not be in the public interest. If Fox were to take over the rest of Sky, the CMA said, it would lead to the Murdoch Family Trust, which owns both Fox and News Corporation, having “too much control over news providers in the UK across all media platforms”.

The secretary of state has the powers to intervene in certain media mergers on public interest grounds, and there was speculation that he would refer the deal to regulator Ofcom.

Mr Hancock said: “Having reviewed the relevant evidence available, I can confirm that I have today written to the parties to inform them that I am minded not to issue an EIN [European intervention notice] on the basis that the proposed merger does not raise concerns in relation to public interest considerations which would meet the threshold for intervention.

“This is a quasi-judicial decision and I am required to make my decision independently, following a process that is scrupulously fair and impartial, and as quickly as possible.”

Mr Hancock said interested parties will have until 5pm on the 24 May to submit any written representations.