The European Commission (EC) has again extended its antitrust review of Telefonica Deutschland’s (O2’s) planned €8.55bn (US$11.7bn) takeover of German mobile operator E-Plus, setting a new deadline of 10 July.
This is the second five-working-day…
The European Commission (EC) has again extended its antitrust review of Telefonica Deutschland’s (O2’s) planned €8.55bn (US$11.7bn) takeover of German mobile operator E-Plus, setting a new deadline of 10 July.
This is the second five-working-day extension to the phase II review this month – the first, last week, set a deadline of 3 July. These follow a 10-working-day extension in April and a two-day suspension earlier in May.
A spokesperson for O2 described the delay as procedural.
The deal would reduce the number of mobile network operators in Germany from four to three and, as such, is being closely watched throughout the EU.
O2 recently submitted an improved remedies package based on feedback from the commission’s first market test and is said to be in talks with local MVNOs as part of concessions.
Meanwhile, German magazine WirtschaftsWoche reported that EU Competition Commissioner Joaquin Almunia wants to approve the deal, but is keen for a fourth mobile player to be established. According to the report, the new entrant would get spectrum from the merged O2/E-Plus entity along with radio masts, about 200 shops and a customer call centre. However, there is no sign of an interested party at present, the report states, adding that a ‘plan B’ would see operators without their own networks, such as United Internet and Freenet, get more access rights. German mobile operators, currently reviewing the commission’s proposals, are reportedly concerned the EC is intruding upon territory that should be governed by the local Federal Network Agency.
The commission is reportedly set to clear a similar case – Hutchison Whampoa’s takeover of O2 Ireland – this week, although it has a 20 June deadline.
