Paramount-Warner Merger Reportedly Set To Clear EU Antitrust Hurdles

Paramount‘s $110B merger with Warner Bros. Discovery is inching closer to approval in Europe, according to a report in the Financial Times.

The newspaper wrote that the European Commission, the EU’s antitrust enforcer, will clear the takeover rather than subject it to deeper investigation.

The Commission has until July 7 to make a decision, with the FT reporting that Paramount and Warner representatives met with officials on Tuesday.

Paramount will likely be asked to make certain concessions to allay monopoly fears. The nature of these remedies is to be determined, but they could include Paramount exiting its international distribution deal with Universal Pictures.

Bloomberg reported earlier this month that Paramount is prepared to divest some of its children’s TV network assets to clear any regulatory hurdles in the EU.

A European Commission spokesperson declined to comment. Deadline has approached Paramount for comment.

The European Commission’s process is distinct from the work ongoing in the UK, where the Competition and Markets Authority has opened a “merger inquiry” into the deal.

The European Commission is also examining Paramount’s Middle Eastern backing under a Foreign ⁠Subsidies Regulations process. Saudi Arabia’s Public Investment Fund, Qatar Investment Authority and Abu Dhabi’s L’imad Holding Co. joined U.S.-based RedBird and LionTree as investors in the merger, Paramount said in an SEC filing in April.