The European Commission (EC) has cleared Vodafone’s takeover of Germany’s Kabel Deutschland (KDG) for €7.7bn (US$10.43bn).
The commission said that its Phase I investigation of the deal confirmed that the merging parties’ activities were…
The European Commission (EC) has cleared Vodafone’s takeover of Germany’s Kabel Deutschland (KDG) for €7.7bn (US$10.43bn).
The commission said that its Phase I investigation of the deal confirmed that the merging parties’ activities were “mainly complimentary”.
Vodafone said all conditions to its public takeover offer for KDG – Germany’s largest cableco – have now been met. Closing is expected on 14 October.
The commission, which was formally notified of the planned deal on 16 August, determined that in markets where the companies’ activities do overlap, the increase in market share resulting from the takeover is “insignificant” and will not markedly affect competition.
“While Kabel Deutschland primarily offers cable TV, fixed-line telephony and internet access services, Vodafone’s core business consists of mobile telephony services,” the agency noted.
KDG shareholders who have not accepted the offer can still do so before the end of the additional acceptance period on 30 September.
Vodafone said its subsidiary Vodafone Vierte has today approached KDG to enter into talks on concluding a domination and profit and loss transfer agreement in line with German law.
On Monday, Vodafone said investors owning about 72.21% of KDG’s share capital had accepted its offer, boosting its own stake in the cableco to 76.48%.
