Liberty Media are reportedly set to secure backing from the European Union to complete its purchase of the MotoGP championship.
Reuters report that the EU will provide unconditional antitrust approval, which will enable the $3.8 billion acquisition from current owners Dorna to go ahead.
The report cites “people with direct knowledge of the matter” as the source.
Liberty Media, the American owners of F1, announced that they had struck a deal to buy an 86% stake in MotoGP a year ago, with the remaining 14% to remain with Dorna.
The deal requires approval from the European Commission, which acts on behalf of the EU on matters around competition in business.
Liberty Media said it was working constructively with the Commission in order for the deal to go through.
“There is a very large and growing market for audiovisual entertainment well beyond sports, and the transaction will enhance MotoGP’s ability to compete in this highly competitive market,” a Liberty Media spokesperson said.
The EU executive declined to comment; however, it is expected that the European Commission will pass the deal.
Previously, the EU had warned that TV broadcast rights could increase in price because Liberty Media would hold the key to Formula 1 and MotoGP.
An investigation reportedly centred on whether John Malone – the largest shareholder in Liberty Media – would have decisive influence over both companies.
This concern was due to the presence of Liberty Global, his cable TV company, in Belgium, Ireland and the Netherlands and potential issues with shutting out competitors.
The deadline for the deal to go through has been set for July 1.
