March 6 (Reuters) - Telstra Corp TLS.AX and News Corp NWSA.O on Tuesday said they agreed to combine Foxtel and FoxSports Australia, two months after Australia's competitionwatchdog dropped its opposition to the merger.
Under the terms of the deal, News Corp will hold 65 percentin the combined entity and Telstra 35 percent, the companiessaid in a joint announcement.
The transaction is expected to close during the fourthquarter of this year.