This is HUGE. One of the largest roadblocks in the deal came from Brazil’s antitrust authority, the Conselho Administrativo de Defesa Econômica (CADE). We now know that it has approved AT&T’s (T) pending acquisition of Time Warner Inc.

“We appreciate the hard work by CADE to review and evaluate the AT&T-Time Warner merger and approve it based on its benefits to Brazilian consumers,” said David McAtee, Senior Executive Vice President and General Counsel, AT&T Inc.

As with the approvals obtained in Chile and Mexico, CADE approved the merger with targeted conditions to address specific issues it identified.

Here is our biggest issue. CADE’s approval does not require the sale or divestiture of any AT&T or Time Warner assets. We wanted to see some sales to help offset the blooming debt. However, it is good that sales are not being forced. That said, we expect sales will happen.

Now we wait for the US approval. AT&T and Time Warner have received all required merger approvals outside of the United States. In the United States, the transaction remains under review by the U.S. Department of Justice. We expect the transaction to close by the end of 2017.

We have been very bullish on the deal as the content for DirecTV makes sense.

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