Másmóvil takes Euskaltel for $2.4bn following state approval
Spain has approved Másmóvil's friendly takeover of rival Euskaltel.
The deal was rubber stamped by Spain's National Markets and Competition Commission (CNMC) on 16 June and gained state approval yesterday, 23 June.
CNMC said in its decision: "At a national level, Másmóvil strengthens its position as the fourth operator in the retail markets; Euskaltel's presence was still limited, so the addition of market shares will not be significant. In the case of Asturias, Galicia and the Basque Country, where Euskaltel has a significant share of the retail market and a strategy that differentiates it from MásMóvil, there are other significant operators that will continue to exert competitive pressure.
"As regards wholesale markets, although the resulting entity will strengthen its position as the main demander of wholesale services, this is not expected to substantially modify the competition conditions given the existence of vertically integrated operators with significant shares in retail markets."
Másmóvil and Euskaltel are yet to comment on the state approval.
MasMovil launched a takeover bid for Euskaltel on 29 March, reporting it already had the agreement of shareholders. Reports at the time stated Euskaltel is worth nearly $2.4 billion.
Shareholders owned 52.32% of Euskaltel’s capital and MasMovil was offering €11.17 euros per share in cash, a 16.48% premium on its closing share price on 26 March.
Euskaltel's major shareholders Zegona, Kutxabank and Corporacion Financiera Alba ALB.MC all agreed to accept the offer.