Mexico’s Instituto Federal de Telecomunicaciones (IFT), the local telecommunications regulator, authorized the plan for US-based Spanish-language broadcaster Univision to acquire the content business of Mexico’s Grupo Televisa in a deal to create a new company, Reuters reported.
In April, the two companies announced a plan to create a new firm called Televisa-Univision, which will feature Spanish-language video content from both broadcasters, including its world famous telenovelas, as well as sports and movies.
“No anti-competitive effects derived from the transaction are expected in these coinciding activities of Univision Holdings and Grupo Televisa, largely due to the marginal participation of Univision Holdings in Mexico,” the IFT said.
The transaction, partially financed by a $1 billion Series C preferred investment led by the SoftBank Latin American Fund, with participation from ForgeLight, Google and The Raine Group, is expected to close this year. Nevertheless, the deal is yet subject to regulatory approvals in the United States and Mexico, as well as Televisa shareholder approval.