Regulators clear BSkyB's Amstrad deal

BSkyB’s £125m (€184m) takeover of Alan Sugar’s Amstrad business was today given the green light by regulators.

The Office of Fair Trading (OFT) in the UK cleared the deal which it said did not breach competition guidelines.

Sir Alan, who is chairman and chief executive of the firm as well as the majority shareholder, agreed to sell Brentwood-based Amstrad to the satellite broadcaster at the end of July.

BSkyB extended its offer period for the deal earlier this week after it revealed it had received acceptances for almost 86% of the company’s stock. Shareholders now have until September 4 to accept the offer.

The two firms already have a close relationship as Sir Alan’s firm supplied around 30% of the set-top boxes purchased by Sky in the year to June 30.

The broadcaster, which is 39.1% owned by Rupert Murdoch’s News Corporation, has said it would benefit from an in-house design and development capability as a result of the deal.

The Competition Commission is already looking into Sky’s 17.9% holding in ITV after the OFT said the stake raised “significant” competition and public interest concerns.

Media regulator Ofcom is also conducting a consultation on proposals from BSkyB and National Grid Wireless to replace Sky’s free channels with pay TV services on the digital terrestrial television platform.