21st Century Fox Takeover Bid for Sky — House of Lords, 2016-12-12
Topic: Domestic Commerce
Richard Keen (Conservative, Centre-right): With your Lordships’ leave, I will repeat as a Statement an Answer given in another place by my right honourable friend Matthew Hancock. The Statement is as follows: "As honourable Members know, Sky plc announced on Friday 9 December that it had received an approach from 21st Century Fox to acquire the 61% share in Sky plc which it does not already own. The announcement made clear that the independent directors of Sky plc and 21st Century Fox have reached agreement on price. However, the offer is subject to further discussion, and Sky has advised that there is no certainty at this stage that an offer will be made. The terms of any deal will obviously need to be agreed by the non-21st Century Fox shareholders of Sky plc. The announcement also said that under the takeover code, 21st Century Fox is required to set out its intentions by 6 January 2017. The Government have had no prior information from either of the parties, and there has been no contact with either Sky plc or 21st Century Fox about the possibility of the bid The Secretary of State has power to intervene in certain media mergers on public interest grounds, as set out under the Enterprise Act 2002. Government guidance on the operation of the public interest merger provisions under that Act gives an indication of how the intervention regime will operate in practice and the approach the Secretary of State is likely to adopt in considering cases. However, the important point is that each transaction will be looked at on its merits, on a case-by-case basis. The guidance makes clear that the Secretary of State will aim to take an initial decision on whether to intervene on public interest grounds within 10 working days of notification of the merger to the relevant competition authority or the transaction being brought to her attention, whichever is later The role of the Secretary of State here is a quasi-judicial one, and it is important that she acts independently and is not subject to improper influence. It would be inappropriate for me or the Secretary of State to comment further on this proposed bid. In the light of Friday’s Statement, and given the role of the Secretary of State is a quasi-judicial one, the department is putting into place procedures to ensure that the Secretary of State’s decision-making process is scrupulously fair and impartial. These will include guidance for other Ministers, special advisers and officials on dealing with the parties to the bid or any other interested parties to ensure representations are made only through proper channels, the designation of named officials who will support the Secretary of State in her decision-making process and guidance on how they should conduct themselves, ensuring no one who has a potential conflict of interest is involved in the process We are, of course, aware of the wide interest from Parliament given the issues raised by the 2010 bid by News Corp for Sky and the advice DCMS received from Ofcom in December 2011. However, if a formal bid is made by 21st Century Fox and accepted by the Sky plc shareholders, then the bid will need to be considered on its merits and in accordance with the legislation. At this stage we cannot comment further".