Canal Digital and Viasat Consumer venture approved
The European Commission has approved the previously announced combination of Canal Digital, Telenor Group’s satellite pay-TV business, with Viasat Consumer, Nordic Entertainment Group’s satellite pay-TV and broadband-TV business, into a new joint venture company. Telenor Group and Nordic Entertainment Group will each hold 50% of the shares of the new company.
The Nordic consumer offering will focus on satellite distributed pay-TV (DTH) and streaming services, as well as IPTV on open fibre networks, and will continue to develop market-leading TV distribution services. The combination is expected to yield annual cost synergies of approximately SEK 650 million, with full effect from 2022. Integration and other related costs are expected to total approximately SEK 900 million.
“We are delighted to receive the approval from the European Commission to complete the transaction for creating a new and strong Nordic company within the TV industry. The joint venture will combine the respective strengths of Canal Digital and Viasat Consumer, leveraging synergies for the benefit of our customers and shareholders”, says Jørgen C. Arentz Rostrup, CFO, Telenor Group.
NENT Group and Telenor will provide a suite of services to the joint venture, including transponder capacity and technology, content and streaming services. The Board of Directors will have equal representation from NENT Group and Telenor, with a rotating chairmanship.
The transaction is expected to close on 5 May.