EU conditionally approves Telefónica’s E-Plus acquisition
Telefónica’s much-deliberated acquisition of KPN’s German unit, E-Plus, received approval from EU anti-trust regulators today, on the condition that the Spanish operator divests radio wave spectrum and network capacity.
KPN accepted Telefónica’s €8.6 billion bid for its E-Plus unit in July last year, but the deal has raised concern from the European Commission over the effect it may have on competition in the German market.
Telefónica has now agreed to sell network capacity, as well as improve conditions offered to a number of service providers, and the Commission hopes this will enable up to three new virtual operators (MVNOs) to enter the market.
“The remedies to which Telefónica commits ensure that the acquisition of E-Plus will not harm competition in the German telecoms market,” Joaquin Almunia, European Competition Commissioner said in a statement.
Telefónica reportedly plans to merge E-Plus with its own German O2 operations.