Spanish market regulator CNMV has approved French incumbent Orange’s acquisition of local fixed-line player Jazztel for €3.4bn (US$3.7bn), or €13 (US$14.2) per share.
The approval comes one week after the European Commission green-lit the deal…
Spanish market regulator CNMV has approved French incumbent Orange’s acquisition of local fixed-line player Jazztel for €3.4bn (US$3.7bn), or €13 (US$14.2) per share.
The approval comes one week after the European Commission green-lit the deal with conditions.
A key condition will see Orange sell a fibre network representing 720,000 building units, largely composed of redundant connections between the Orange and Jazztel’s existing networks.
In addition, Orange will temporarily provide the eventual buyer with a wholesale subscription offer to Jazztel’s ADSL network. If necessary, the French telco will also provide a mobile wholesale offer if they do not already have a 2G, 3G and 4G access.
Orange’s offer is conditional upon at least 51.23% of Jazztel shareholders tendering their shares.
“Through this transaction, Orange aims to create the second largest fixed-line broadband operator and one of the most dynamic players in the mobile segment in Spain, thereby accelerating the movement of its customers towards convergent offers,” Orange said in a statement.
The company expects to generate up to €1.3bn in global synergies from the combined entity, thanks to savings in operational expenditure and investments in networks.
The operator also aims to deploy fibre to 10 million Spanish households by the end of 2016.
Orange first announced its intention to acquire Jazztel last September, offering €13 per share in cash for 100% of Jazztel, which represented a 34% premium on the volume-weighted average closing price over the previous 30 trading days.
However, in December, EU regulators launched an in-depth antitrust probe into the planned takeover, as they feared the takeover would significantly reduce competition for fixed internet access services and fixed-mobile multiple-play offers and lead to price increases for consumers.
