The Fair Trade Commission (FTC) announced yesterday it would extend its review of Taiwan Mobile Co’s (台灣大哥大) planned acquisition of a majority stake in Kbro Co (凱擘) for another 30 days because the deal would have a significant impact on competition.
Kbro is the nation’s No. 2 cable TV system operator, with 12 networks and about 1.1 million subscribers as of June.
“Because this deal is an important case that involves both digital convergence and fair competition, the commission decided to extend the review period,” the commission said in a statement.
The commission will hold meetings with academics, industry representatives and other government agencies before reaching a final decision, the statement said.
Taiwan Mobile, the nation’s second-largest telecom operator, announced on Sept. 16 that it planned to purchase the Carlyle Group’s holding in Kbro for NT$32.8 billion (US$1 billion).
It submitted its application to the commission on Sept. 22, saying it hoped the commission would green-light its bid soon.
If the deal is approved, Taiwan Mobile will have 1.6 million cable TV subscribers, or about 34.8 percent of the nation’s 4.6 million cable TV subscribers.
The deal, however, is also subject to approval by the Investment Commission and the National Communications Commission (NCC).
The NCC, which has yet to give the FTC its views on the deal, is reportedly concerned the purchase would give Taiwan Mobile a one-third share of the cable TV market.
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