The Commission reports to have cleared two closely related acquisitions, which result in the acquisition of Belgium cable operator Telenet by Liberty Global Europe, a subsidiary of US Liberty Global Inc. (LGI) and the acquisition of UPC Belgium by Telenet. The operation is based on two connected transactions. In Belgium, LGI would sell its subsidiary UPC Belgium to Telenet. In parallel LGI acquires a number of outstanding shares of Telenet in order to acquire control of Telenet. The Commission has investigated the effects of the operation on the Belgium cable TV market both at retail and wholesale levels. At the cable TV retail level, the only geographic area where the proposed merger would result in overlapping cable networks is Leuven and the parties’ increased network coverage in Belgium would be marginal. Therefore the competitive situation at retail level would not change to a significant extent. At wholesale level, the Commission’s investigation indicated that the proposed transaction would not result in a substantial change of the merged entity’s position vis-à-vis TV broadcasters and channel providers, in view of UPC Belgium’s small subscriber base. Also, the market investigation confirmed that TV broadcasters interested in reaching customers along the Dutch-Flemish linguistic area do not tend to negotiate the conditions of distribution on a trans-national basis and therefore the proposed transaction would not change these negotiation patterns to a significant extent. [26 February 2007]