The Commission has cleared the proposed acquisition of ProSiebenSat.1, the second largest German TV broadcasting group, by equity funds Permira and KKR, which already jointly control the Dutch SBS TV group, that is mainly active in the Nordic countries, The Netherlands and Belgium. Permira also controls All3Media, a UK TV production and distributor of TV rights. ProSiebenSat.1 operates five TV channels in Germany of which four are financed by advertising. The proposed transaction would allow KKR and Permira to extend their footprint in national TV broadcasters into the German free TV market. The Commission concludes that there are no horizontal overlaps between the activities of ProSiebenSat.1 and SBS with respect to the vertical relationship between All3Media and ProSiebenSat.1 for the supply of TV content, the Commission finds that there are no competitive concerns due to the negligible volume of sales in Germany. The Commission also analysed the potential effects of the proposed transaction arising from the fact that ProSiebenSat.1 and SBS are among the larger TV broadcasters in their regions, but concluded that there was no risk that the new entity would be able to drive competitors out of the market or discriminate against them. [22 February 2007]