Telefonica O2 Secures Approval for E-Plus Takeover
Published on: 2nd Sep 2014
Telefonica's German subsidiary says that it has received final approval for its takeover of local rival, E Plus, owned by Netherlands based KPN.
The European Commission confirmed that the previously announced wholesale airtime agreement with Drillisch complies with the agreed upfront conditions.
"With the final clearance of the European Commission now granted, we are able to close the transaction soon, and create a leading digital telecommunication company in Germany," said Markus Haas, CSO of Telefónica Deutschland. Rachel Empey, CFO of Telefónica Deutschland, added: "By combining the strengths of both Telefónica Deutschland and E- Plus, the new company is well positioned to challenge the market with even more innovative products and services, combined with a great customer experience."
In the course of the merger clearance process, Telefónica Deutschland has agreed to sell upfront 20 percent of its mobile network capacity using a Mobile Bitstream Access model, with the opportunity to extend up to an additional 10 percent. Telefónica Deutschland had signed a corresponding contract with Drillisch, which the European Commission has now confirmed complies with the upfront conditions associated with the approval of the transaction.
As a next step Telefónica Deutschland will execute the capital measures to finance the transaction.