Vodafone’s €7.2bn (US$10bn) acquisition of Spanish cableco Ono has been cleared by the European Commission without remedies.
The tie-up will allow Vodafone to add Ono’s triple-play services to the mobile and fixed offering it already markets in…
Vodafone’s €7.2bn (US$10bn) acquisition of Spanish cableco Ono has been cleared by the European Commission without remedies.
The tie-up will allow Vodafone to add Ono’s triple-play services to the mobile and fixed offering it already markets in Spain.
The operators’ services overlap to some extent: Ono has an MVNO while Vodafone provides fixed-line telephony and ADSL broadband. Ono’s network covers 13 of Spain’s 17 regions, passes 7.2 million homes, and boasts 1.9 million subscribers, and Vodafone is working on developing its own FTTH network.
However, the Commission expects any impact to be limited as the merged entity would continue to face significant competition from other market players such as incumbent Telefonica, and other operators such as Orange and Jazztel.
The EC said the merger raised questions about vertical and conglomerate relationships, particularly in relation to bundled packages. However the availability of alternative operators, and existing regulatory obligations, meant the merged entity woudl not be able to shut out rivals from offering their own multi-play bundles.
The regulator’s consent means Vodafone is on schedule to close the transaction in Q3. The EC’s decision followed its approval, albeit with remedies, of Telefonica’s takeover of KPN’s German mobile operator E-Plus.
The decision sets a precedent for four-to-three consolidation between mobile operators in larger European markets and opens the door for TeliaSonera’s Spanish subsidiary, Yoigo, to be acquired by one of its three larger rivals.
The number three mobile operator, Orange, is said to have mandated BofA Merrill Lynch to evaluate potential bids for Yoigo and alternative fixed-line player Jazztel.