European Regulators to Examine German Network Merger Plans

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The European Union is expected to open a full investigation into merger plans between two of Germany's mobile network operators.

German regulators had been seeking to handle the matter internally, but the Reuters news agency reports that the EU will overrule them and decide the matter itself.

Earlier this year, KPN agreed to sell its German subsidiary, E-Plus to Telefonica's O2 Germany in an EUR5 billion deal.

KPN would also be left with a 17.6% stake in the merged company which sees the number of mobile networks in the country shrink to three, plus MVNOs.

The EU is said to be concerned about the reduction in competition in the local market.

The opening of a full investigation will delay the completion of the deal, which is important for KPN which needs the money to pay down its debt.

On the web: Reuters

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Tags: kpn  o2  e-plus  Germany 

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