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Last Updated: Tuesday, 21 March 2006, 15:10 GMT
Formula One takeover backed by EU
Fernando Alonso in action at the Malaysian Grand Prix
The sale comes as the sport faces an uncertain future
European regulators have given the green light to the takeover of motor racing group Formula One by UK private equity firm CVC Capital Partners.

The European Union said the deal "would not significantly impede effective competition" in the 25-nation area.

However, its approval was conditional on CVC selling Spanish subsidiary Dorna, which controls the rights to the MotoGP championship.

CVC plans to keep F1 boss Bernie Ecclestone as chief executive.

The 75-year-old has made a fortune from exploiting the rights to Formula One.

The sport is still facing an uncertain future, with carmakers threatening to break away and set up a rival championship in 2008 unless significant changes are made to the way it is run.

Mr Ecclestone and German bank BayernLB are selling their stakes to CVC Capital Partners for an undisclosed price, giving CVC majority control over the motor racing company.

CVC currently owns 38 firms in Europe and is also the majority shareholder of the Automobile Association (AA) in the UK.


SEE ALSO:
F1's new owners extend their grip
06 Dec 05 |  Business
Ecclestone to sell interest in F1
25 Nov 05 |  Business
F1 dispute settled out-of-court
23 Mar 05 |  Business
Judge slams Ecclestone's F1 power
06 Dec 04 |  Business


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