WELLINGTON, Aug 16 (Reuters) - Spark New Zealand said on Tuesday it was formally opposing a merger between SkyNetwork Television Ltd and Vodafone Plc's NewZealand unit, stating that Sky's monopoly on premium sportscontent rights in New Zealand is a key concern.
"Based on Sky's current wholesale market arrangements forpremium sports content, we don't believe the proposed merger isin the best interests of New Zealand consumers and so should notgo ahead in its current form," said Spark New Zealand's generalmanager regulation, John Wesley-Smith.
Pay TV provider Sky Network and Vodafone in June announced aproposed deal under which Sky Network will buy New Zealand's No.1 mobile phone provider for NZ$1.3 billion ($936.91 million) incash, to be funded through new debt, and the rest in new Skyshares. Vodafone will own 51 percent of the combined entity ifthe deal goes through.
The transaction remains subject to regulatory approvals fromNew Zealand's Overseas Investment Office and the CommerceCommission.
"A merged Sky/Vodafone will be able to leverage its monopolypower in the sports market, to the detriment of consumers.That's why we're asking the Commerce Commission to reject theproposed merger in its current form," said Wesley-Smith. ($1 = 1.3875 New Zealand dollars) (Reporting by Rebecca Howard; Editing by Matthew Lewis)
Vodafone (VOD)
