Investing.com - The U.K. government is likely to refer (NASDAQ:21st Twenty-First Century Fox's) £11.7 billion takeover bid for (LON:Sky) to the competition authorities.
The announcement was made by Culture Secretary Karen Bradley after a report by the watchdog Ofcom.
Bradley said in the House of Commons she was "minded to" send the deal to the competition authorities.
"On the basis of Ofcom's assessment I confirm that I am minded to refer to a Phase 2 investigation on the grounds of media plurality," Bradley told lawmakers.
"The reasoning and evidence on which Ofcom's recommendation is based are persuasive," she added.
"The proposed entity would have the third largest total reach of any news provider, lower only than the BBC and ITN and would uniquely span news coverage on television, radio, in newspapers and online."
Parties to the deal have until July 14 to submit representations.
21st Century Fox is seeking to acquire the 61% stake in Sky its does not already own.
Sky shares were up 3.61% at 08:45 ET after the announcement.