Adds comment from FCC chair, more details in paragraphs 5-12

By David Shepardson

WASHINGTON, Feb 27 (Reuters) - The Federal Communications Commission said on Friday it approved Charter Communications’ CHTR.O $34.5 billion acquisition of Cox Communications.

The deal announced in March 2025 combines two of the largest U.S. cable and broadband operators in their battle with streaming companies and mobile carriers.

The FCC said Spectrum-owner Charter will invest billions of dollars to upgrade its network and deliver high-speed service, and the company committed to onshoring jobs. Charter also agreed to extend its $20/hour minimum starting wage to Cox workers.

Reuters reported last year the deal would create the largest U.S. cable TV and broadband provider with around 38 million subscribers, surpassing market leader Comcast CMCSA.O.

FCC Chair Brendan Carr said the deal "means that customers will get access to lower priced plans."

Cox provides broadband, cable television, voice, and wireless services to 6.3 million customers. Charter told the FCC it would upgrade Cox’s broadband network, resulting in significantly faster broadband speeds in Cox’s service territory through a faster process than without the deal.

Charter declined to comment.

Like other recent transactions involving Verizon, T-Mobile, AT&T and Paramount, the FCC required Charter to commit to not use diversity, equity and inclusion programs as a condition of approval. President Donald Trump issued an executive order seeking to ban DEI programs in January 2025 and has pressured businesses to comply.

The FCC said Charter had "modified its practices and is committed to a work environment free from invidious discrimination."

The companies said they expect to realize $500 million in cost savings within three years of the deal's expected close in mid-2026.

Under the cash-and-stock deal, Charter will take on about $12.6 billion of Cox's net debt and other obligations, giving the transaction an enterprise value of $34.5 billion.

The combined firm will rebrand as Cox Communications within a year of the deal's close, with Charter's Spectrum being the consumer-facing brand. Charter and Cox had also discussed a merger in 2013 before shelving the plan.

(Reporting by David ShepardsonEditing by Rod Nickel)

((David.Shepardson@thomsonreuters.com; 2028988324;))