Tele2 buys TDC’s Swedish operations for €311m

Stockholm-based operator Tele2 is buying the Swedish operations of TDC for 2.9 billion kronor, the equivalent of €311 million, the companies have announced. The move leaves Danish incumbent TDC with just two markets, Denmark and Norway.

TDC’s Swedish operation is about a quarter the size of Tele2’s business in the country, where it has 3.7 million mobile customers and turnover of 12.6 billion kronor (€1.35 billion). TDC has focused on business services in Sweden.

Pernille Erenbjerg, TDC’s group CEO and president, said: “With the sale to Tele2, we have found a good long-term owner who stands to achieve considerable synergies and will therefore be able to invest in further developing the business.”

As both operators have cross-border business within the European Union, the deal is subject to the approval of the European Commission. The companies expect this to take until the fourth quarter of the year.

Tele2 said the move would reinforce its business services in its home market of Sweden.

Allison Kirkby, president and CEO of Tele2, said: “This deal is a unique opportunity for Tele2 to build scale and expand its range of services in the B2B market.”

She added: “It is hugely complementary to our existing Swedish business, and it allows us to meet the global trend of large B2B customers demanding a wider range of communication and network services.”

TCD’s 809 full-time employees in Sweden will transfer to Tele2, said the companies.

Samuel Skott, CEO of Tele2 Sweden, added: “Combining Tele2’s and TDC Sweden’s individually powerful operations will create an even stronger B2B communications provider on the Swedish market. Tele2 has traditionally been strong in mobile telephony and fixed telephony while TDC Sweden is further ahead in network as a service, unified communications and hardware.”

TDC said that the sale completed a strategic review of its operations.