Cableco Zon Multimedia and wireless operator Optimus will find out within a fortnight if their merger gets conditionally cleared by the Portuguese Competition Authority (PCA), or if they face a prolonged “phase two” investigation.
Last week the…
Cableco Zon Multimedia and wireless operator Optimus will find out within a fortnight if their merger gets conditionally cleared by the Portuguese Competition Authority (PCA), or if they face a prolonged “phase two” investigation.
Last week the regulator invited third parties such as competitors and customers to comment on remedies submitted by the merging parties.
The seven-day comment period ends at 6pm today, after which the agency has 10 days to analyse the feedback and come to a decision on the next step.
It can either choose to permit the merger subject to the commitments offered, or move to an in-depth investigation, which could take months.
A decision could be delayed if the PCA stopped the clock on that 10-day period, which it could do under certain circumstances.
According to local reports Zon’s rival Cabovisao and another party had asked for the comment period on the proposed remedies to be extended, but this was rejected by the regulator.
The remedies package has not been disclosed but TelecomFinance reported previously that they focus on Optimus’ FTTH partnership with Vodafone.
Both wireless operators have networks which pass 200,000 homes and they offer wholesale access to each other meaning they have the opportunity to sell services to 400,000 properties. One estimate has the two operators servicing a total of 80,000 customers, although official figures have not been disclosed. The remedies aim to preserve Vodafone’s position in the FTTH venture.
Zon’s MVNO, which has struggled to attract customers, is not of interest to the regulator as Zon’s five-year contract with Vodafone is set to expire later this year.
The PCA’s analysis began more than five months ago. In the event of the regulator pursuing an in-depth review, a prospective completion date would be pushed back to mid-October at the earliest.
Zon’s largest shareholder Isabel Dos Santos and Optimus’ parent Sonaecom proposed the merger last December.
Sonaecom and Dos Santos have agreed to create a 50-50 joint investment vehicle that will 50% plus one share in the merged business, giving it management control. Dos Santos would contribute all her holdings in Zon to the joint venture, while Sonaecom would add a substantial part of its stake in Optimus.
Optimus’ board is being advised by BPI and Santander. Zon’s board is being advised by Espírito Santo and Caixa BI.
