Combined company would become the nation’s largest internet and video provider

The California Public Utilities Commission voted unanimously Thursday to approve Charter Communications’ $21.9 billion acquisition of Cox Communications, removing the final state-level regulatory hurdle for a deal that would combine the two cable and broadband providers into a single company spanning homes and businesses across the country.

California was the last of 45 states to grant approval. The state regulator had raised concerns about whether Charter’s rollback of some diversity, equity and inclusion policies — made to secure Federal Communications Commission approval — would conflict with state requirements. The FCC signed off in February, and the other 44 states where the companies do business had approved the deal over the intervening months.

To secure the commission’s approval, Charter agreed to offer low-cost broadband service to low-income households for five years and to maintain existing price-lock commitments. The company must also contribute $30 million to a state fund for broadband adoption, digital literacy, green technology and computers for low-income households.

California additionally requires Charter to report diversity data on its 6,300-employee California workforce and on business with suppliers owned by underrepresented populations.

The deal combines Charter’s customer base with Cox’s, creating the nation’s largest internet and video provider by subscriber base. The deal gives the companies added scale to defend their broadband businesses against competition from 5G home internet offered by T-Mobile US, Verizon Communications and AT&T, as well as satellite service from SpaceX’s Starlink, which is pursuing expansion of its internet business.

Verizon and T-Mobile also agreed to modify some diversity practices last year while their pending FCC approvals were under review. California was likewise the last state to approve Verizon’s acquisition of Frontier, citing concerns about conflicting federal and state-level diversity policies.

Charter and Cox expect the deal to close later this month. The combined company will adopt the Cox Communications name within one year of closing.