Mexican broadcaster Grupo Televisa has won a federal injunction against Walt Disney Co’s acquisition of Twenty-First Century Fox Inc’s assets in Mexico, a Televisa representative said on Thursday, a move that could at least temporarily stall the deal.
Televisa said that the Mexican Telecommunications Federal Institute (IFT), regulator that supervises the merger agreement in Mexico, ‘unfairly dismissed the company’s arguments about threats related to market competition’ because of the merger deal, said the person, who asked not to be identified, because it is a confidential matter.
The judge ordered the regulator to start a new investigation into the market competition and review whether the arguments made by Televisa are substantial, according to a Bloomberg document. The person also said that the people involved should be identified as soon as possible. The IFT said it had not yet been notified about the judge’s decision. In addition, representatives from Disney and Televisa did not expressed themselves after normal business hours.
The IFT said in March that Disney’s ownership of ESPN and Fox Sports would create a concentration, leaving Televisa as the only remaining competitor in that specific market. The merger was approved with the only condition that Disney and Fox agree to sell Fox Sports channels and programming rights in Mexico and Brazil. Recently, the IFT granted Disney a six-month extension to sell the assets in the country