(Dec 12): Formula 1 owner Liberty Media Corp’s US$3.8 billion (RM16.9 billion) plan to buy motorcycle racing league MotoGP World Championship is set to be hit by an in-depth European Union probe, in the first escalation of a big merger case by new antitrust chief Teresa Ribera.

The Spaniard’s team is concerned the tie-up could hamper competition in broadcasting and streaming markets by drawing two giant motorsports brands under one banner, according to people familiar with the EU probe who spoke on condition of anonymity.

Officials are now readying a decision to start a so-called phase 2 probe by the current deadline of Dec 19, they said, adding that the European Commission’s step was still in draft form and could still change.  

A Liberty Media spokesperson said that the company is continuing to “work constructively” with EU regulators as part of the review and that it hopes they “will understand the dynamic nature of the market.” The Brussels-based commission declined to comment.

Liberty Media is taking over Madrid-based MotoGP by buying its exclusive rights holder Dorna Sports with a combination of cash and shares of Series C Liberty Formula One common stock. The deal will bring one of the world’s biggest motor-racing brands and MotoGP — often described as the two-wheeled equivalent of Formula 1 — under a single roof.

In-depth EU probes typically add about 90 working days to deal reviews — but can drag on, for example if regulators stop the clock to demand further data. The EU’s antitrust arm usually demands remedies to solve competition concerns but sometimes also decide to give their unconditional approval if initial concerns are shown to be unfounded.

Heightened scrutiny can also lead to firms walking away from planned acquisitions. Under the terms of the deal, Liberty would have to pay Dorna €126 million if it ends up withdrawing from the takeover.  

Regulators have previously raised concerns over drawing both sporting brands together. CVC Capital Partners Ltd. was forced to put MotoGP up for sale nearly two decades ago to gain antitrust approval from European regulators for its takeover of Formula 1 in 2005.

MotoGP is just the latest asset to be taken over by billionaire John Malone’s sprawling Liberty Media empire that already includes a wide range of media, communications and entertainment businesses such as concert promoter Live Nation Entertainment Inc.

Since buying F1 in 2016, Liberty Media has targeted key markets including the US, attempted to grow the sport’s popularity through digital streaming and struck gold with the show Drive to Survive.

Uploaded by Magessan Varatharaja