Vodafone has abandoned plans to merge its Greek unit with rival operator Wind Hellas.
Vodafone said in a short statement that it and Wind owner, Largos, have ended discussions regarding a potential business combination between the two companies.
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Vodafone has abandoned plans to merge its Greek unit with rival operator Wind Hellas.
Vodafone said in a short statement that it and Wind owner, Largos, have ended discussions regarding a potential business combination between the two companies.
A Vodafone spokesperson attributed the decision not to merge Greece’s second and third largest mobile operators to “a number of factors”, including the uncertainty in the Greek market.
He declined to comment on suggestions that the proposed merger faced opposition from antitrust regulators. Several media reported earlier with reference to unnamed sources that the European authorities were concerned about creating a market with only two operators – a merged Wind/Vodafone and Deutsche Telekom-controlled OTE.
The Financial Times cited people with knowledge of the talks as saying the two companies may still decided to share networks, something the regulators are more likely to allow.
As previously reported, Vodafone Group CEO, Vittorio Colao, said in November the Greek unit, Vodafone-Panafon, may not be viable in the long-term if regulators did not approve the merger.
OTE CEO, Michael Tsamaz, also reportedly supported the move, telling the Wall Street Journal late last year that he saw it as “a healthy move” for Greece’s telecoms sector as a whole.
Today’s announcement is likely to come as a surprise to many as, late last week, reports suggested the two companies were close to announcing a deal.
Wind Hellas was not immediately available for comment.
