BRUSSELS :Formula One owner Liberty Media received unconditional clearance from EU regulators for its roughly 4 billion euros ($4.60 billion) acquisition of Dorna Sports, which owns MotoGP, the European Commission said on Monday.
Liberty Media had argued the transaction would allow it to grow the reach and appeal of MotoGP.
The commission said the decision followed a lengthy probe that examined if the acquisition would reduce competition for the licensing of sports content broadcasting rights.
“Based on the evidence gathered, the Commission found that on such markets the companies are not close competitors for the licensing of broadcasting rights for sports content,” the commission said in a statement.
“Therefore, the transaction will not remove important competitive constraints between Formula 1 and MotoGP,” it added.
Liberty Media CEO Derek Chang welcomed the EU’s clearance and reiterated he saw the potential for strong growth in MotoGP.
“Today’s approval from the European Commission marks the final condition to closing Liberty’s acquisition of MotoGP,” said Chang.
“MotoGP is a highly attractive premium sports asset with incredible racing, a passionate fanbase and a strong cash flow profile. We believe the sport and brand have significant growth potential, which we will look to realize through deepening the connection with the core fan base and expanding to a wider global audience,” he added.
Liberty Media said its acquisition of 84 per cent of Dorna was worth 4.3 billion euros on an enterprise value basis, and represented an equity value of 3.7 billion euros.
Reuters had reported that EU regulators were poised to approve the acquisition in April.
($1 = 0.8703 euros)
