Tele2 to sell off Norwegian subsidiary to TeliaSonera
Swedish operator Tele2 is set to sell its Norwegian subsidiary to TeliaSonera for approximately $744 million.
Tele2 was looking for expansion in Norway, along with the Netherlands and Kazakhstan, after exiting Russia last year.
However, its failure to gain spectrum in the country’s mobile auction in December left it without a clear path to grow its network.
TeliaSonera’s acquisition leaves Norway’s mobile market with only two established operators and new entrant Access Industries.
It is expected that the deal could face opposition from the Norwegian Competition Authority, with regulators likely to demand concessions.
Tele2’s CEO Mats Granryd believes the deal should be approved, given that three mobile players will now have licences.
TeliaSonera expects the combination will lead to cost synergies of 800 million kr ($129 million) per year from 2016, and it will increase its customer base in Norway from 1.6 million to 2.7 million.
The company will also increase its market share in Norway to 40% from 23%.