Mexico. The Federal Institute of Telecommunications, IFT, approved granting Disney and Fox, an extension to the suspension of the disincorporation period for 2 months to sell the Fox Sports business in Mexico, so it would end on May 7 of the same year.
The disincorporation of Fox Sports in Mexico is one of the conditions imposed on March 11, 2019 by the IFT Plenary and accepted in its entirety by the two companies, to authorize Disney to acquire assets of 21CF. In this sense, the period granted for this process expired on March 5, 2021. However, taking into consideration the situation generated as a result of the Covid-19 Coronavirus pandemic, the Parties requested the IFT to extend the suspension of the disincorporation period granted by the Plenary of the Institute on December 2, 2020.
In response, the IFT Plenary determined to grant an extension to the suspension, which includes from March 1 to May 1, 2021, so that the disincorporation period would end on May 7 of the same year.
Based on the information provided by the Parties and the Independent Auditor, the IFT determined that the extension to the suspension is conducive since, at this time, there is a notorious impossibility for Disney and 21CF and the parties involved to continue in full with the disincorporation process and achieve the sale of Fox Sports in Mexico as of March 5, 2021.
The extension to the suspension granted by the Plenary does not exempt the Parties from compliance with the other conditions established in the resolution authorizing the concentration between Disney and 21CF, including the obligations relating to maintaining and selling Fox Sports in Mexico as a viable, competitive, going on and independent business of Disney and 21CF, in the market for the provision and licensing of programming channels and programmes for pay-TV providers, in the sports category.
In this regard, the Disincorporation Agent, the Independent Auditor and the Independent Administrator shall remain in the exercise of their powers.
As has happened since the authorization of the concentration between Disney and 21CF, the IFT will continue with the supervision and verification of compliance with the conditions imposed to preserve free competition.
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