Paramount-Warner Merger Enters Crunch Time In Europe, UK Holds Key

The Paramount–Warner merger enters crunch time in Europe as the UK prepares to decide whether to intervene, after U.S. approval. In January 15 meetings, David Ellison discussed Paramount’s UK interests with culture secretary Lisa Nandy and Susannah Storey, setting up a European review that is now nearing a decision point. Nandy said she was “minded” to intervene in the $110 billion deal, calling it “unprecedented,” though no final decision has been made. Paramount expects to close by the end of September and has a “ticking fee” of 25 cents per share—about $650 million—for each quarter the takeover misses beyond Q3. The company has until July 6 to submit final representations; if intervention is issued, Ofcom and the CMA would investigate, with the CMA given 40 days for phase-one reporting. Phase two could extend beyond five months.