Kabel Deutschland to acquire Tele Columbus for €618 million
21 May 2012 |
German cable company Kabel Deutschland (Kabel DL) has agreed to buy cableco Tele Columbus for approximately €618 million.
The move confirms reports last week that Kabel DL fought off competition from Deutsche Telekom and Liberty Global to acquire Columbus.
Tele Columbus has approximately 1.7 million customers and a footprint located mainly in Berlin, Dresden, Magdeburg and Potsdam. The company reported sales of €218 million for the fiscal year 2011 and an operating profit of €81 million.
Kabel DL said in a statement today that the transaction will help strengthen its existing broadband infrastructure in Germany.
Germany’s competition authority had previously acted to prevent Kabel DL’s takeover activity in the domestic market, having blocked its bid to merge with Kabel Baden-Wuertemberg (Kabel BW) and Liberty Global (Unitymedia) in 2004. Recent decisions, however, suggest a change in the authority’s stance regarding consolidation.
Unitymedia completed its acquisition of Kabel BW in December 2011 for €3.16 billion, after the plans were met with approval from the Federal Cartels Office.
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