Disney-Fox Deal Stalled in Mexico by Televisa Injunction

(Bloomberg) -- A judge in Mexico granted Grupo Televisa SAB an injunction that will delay the closing of Walt Disney Co.'s $71 billion purchase of 21st Century Fox Inc.'s entertainment assets in the country, according to a person familiar with the matter.

Broadcaster Televisa argued the telecom regulator overseeing the deal in Mexico unfairly dismissed the company's arguments regarding threats to competition from the deal, the person said, asking not to be identified as the matter is confidential.

The judge ordered the regulator to carry out a new investigation into competition and review whether Televisa's arguments carry substance, according to a document seen by Bloomberg News. The parties are set to be notified shortly, the person said.

Telecom regulator IFT said it hadn't yet been notified of the judge's ruling. Televisa didn't respond to requests for comment after regular business hours. A spokesman for Disney said the company had neither received nor was aware of an injunction.

Disney and Fox have already closed the financial transaction and are operating as one company in most markets, and the court decision may have little impact on Disney beyond Mexico.

Disney shares were up 0.5% in U.S. premarket trading Thursday, as the company opened a new “Star Wars” ride at its Hollywood Studios theme park in Orlando, Florida.

The IFT said in March that Disney's ownership of ESPN and Fox Sports would create a concentration, leaving only Televisa as the remaining competitor in that specific market. The deal was approved provided the companies agree to sell the Fox Sports channels and programming rights in the country.

In November, the IFT granted Disney a six-month extension to sell the assets.

--With assistance from Christopher Palmeri and Carlos Manuel Rodriguez.

To contact the reporter on this story: Andrea Navarro in Mexico City at anavarro30@bloomberg.net

To contact the editors responsible for this story: Brendan Case at bcase4@bloomberg.net, Sam Nagarajan, Carlos Manuel Rodriguez

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