TeliaSonera (OMX:TLSN) and Telenor (OSL:TEL) have filed commitments with the Europe Commission to address the antitrust authority’s concerns about its formation of a mobile joint venture in Denmark.
Under the merger proposal, to which the EC lay out…
TeliaSonera (OMX:TLSN) and Telenor (OSL:TEL) have filed commitments with the Europe Commission to address the antitrust authority’s concerns about its formation of a mobile joint venture in Denmark.
Under the merger proposal, to which the EC lay out its objections on 24 June, TeliaSonera and Telenor would pool their Danish mobile operations, reducing the number of network operators in the country from four to three.
In a brief statement today Telenor said: “The proposal ensures continued competition in the Danish market to the benefit of customers, industry and the Danish society.”
“The Commission will now look into our proposal and we will continue our open and constructive dialogue with the Commission. We have no further comments.”
The EC’s provisional deadline to complete the Danish review is 7 October. The regulator is concerned that having fewer players in the market will diminish competition and raise prices for consumers.
The review is the first four-to-three mobile transaction to be reviewed by the new competition commission, headed up by Margrethe Vestager.
Operators and advisers across the European Union will be watching closely to see whether Vestager continues the policy of her predecessor, Joaquin Almunia, who allowed four-to-three mergers to take place, albeit with stringent remedies.
Of all the parties, Hutchison Whampoa has the most invested in the outcome. The Hong Kong group, backed by Li Ka-shing, Asia’s richest man, has agreed four-to-three transactions in the UK – where Three would acquire O2 from Telefonica – and Italy – where Tre would form a 50:50 joint venture with Wind Telecommunicazioni.
