Disney agrees to sell Fox Sports in Brazil to gain antitrust approval

SAO PAULO (Reuters): Walt Disney Co has accepted a request from Brazilian antitrust watchdog CADE to sell local rights to the Fox Sports channel in order to gain approval for its takeover of Twenty-First Century Fox Inc, the regulator said on Wednesday.

CADE said in a statement that Disney has agreed to give the buyer of the sports channel the ability to use the Fox brand at no additional cost, noting that the time frame of the deal is confidential.

According to the agreement signed between Disney and CADE, the divestment will include all Fox Sports broadcast rights in Brazil, as well as agreements with cable operators, properties and broadcast equipment.

CADE added that key employees would also have to be transferred.

The Brazilian regulator also said it had discussed the antitrust implications of the deal with regulators in Mexico and Chile.

(Reporting by Tatiana Bautzer; Editing by Dan Grebler and G Crosse)