Disney must make an offer to buy Sky if its deal with 21st Century Fox is completed before Fox’s takeover of Sky, which is still being reviewed by the UK competition watchdog.
Disney’s bid must match that made by Sky at £11.7bn, which values each ordinary share at £10.75, according to the UK’s Takeover Panel – the independent body that regulates mergers and takeovers.
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However this will not apply if either Fox’s takeover bid for the 61 per cent of Sky it does not already own is approved before the sale of most of its assets to Disney, or if rival Sky bidder the US broadcast company Comcast acquires more than half of Sky’s shares in a deal.
Disney and Fox are said to have accepted these conditions.
In a statement, the Takeover Panel said: “The panel executive confirms that it has informed each of Disney, Fox and Sky of its ruling that, following completion of the acquisition by Disney of Fox… Disney will be required to make a mandatory offer to the holders of ordinary shares in Sky…
“The basis for this ruling is that… the executive considers that securing control of Sky might reasonably be considered to be a significant purpose of Disney’s acquiring control of Fox.”
Picture: Chris Radburn/PA Wire