EU approves Vodafone’s ONO acquisition
03 July 2014 |
The European Commission has given unconditional approval for Vodafone’s €7.2 billion acquisition of Spanish cable operator ONO.
Last month, sources confirmed to reporters that the deal was likely to receive such approval, given that it is no threat to competition in the country.
The acquisition will better position Vodafone to compete with market leader Telefónica, but the European Commission said that the two companies’ activities will be largely complementary as Telefónica is primarily focussed on the fixed-line sector while Vodafone’s main business is mobile.
“[We] found that the impact of the transaction on these markets is likely to be limited as the combined entity would continue to face significant competition from other market players, such as the incumbent operator Telefónica, and other operators such as Orange and Jazztel,” the Commission said in a statement.
The Commission also expects the deal to create several vertical relationships in both the fixed and mobile telecoms markets in Spain.
The deal is Vodafone’s third acquisition of a European cable asset in two years following its purchase of Kabel Deutschland in October last year.
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