Deutsche Telekom secures GTS Central Europe acquisition
15 April 2014 | Kavit Majithia
German operator Deutsche Telekom has secured EU anti-trust approval to acquire GTS Central Europe for approximately $754 million.
The deal gives the German operator access to GTS’ vast fibre-optic network in Eastern Europe. The European Commission declared that the merger would not create competition concerns in Hungary, Romania, the Czech Republic and Poland, where GTS has a particularly strong presence.
“The merged entity would continue to face strong competition after the merger and customers would still have sufficient alternative suppliers in all markets affected,” the EU anti-trust authority said.
The deal was first announced in November last year, and Deutsche Telekom said it was strategising to deliver integrated products and services to businesses in Eastern Europe.
GTS owns and operates fibre-optic and data-centre networks across the Czech Republic, Hungary, Poland, Romania and Slovakia for voice and data services.
When the deal was first struck, Deutsche Telekom’s CFO Timotheus Hottges said the company was “investing against the trend”.
“GTS is a further element for developing our integrated market position, comprising mobile and fixed-line network services,” he added.
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