Deutsche Telekom has received clearance from the European Commission (EC) to acquire GTS Central Europe for €546m (US$730m).
The Commission cleared the deal without conditions.
The EC concluded the takeover will not raise competition concerns as the…
Deutsche Telekom has received clearance from the European Commission (EC) to acquire GTS Central Europe for €546m (US$730m).
The Commission cleared the deal without conditions.
The EC concluded the takeover will not raise competition concerns as the merged entity will continue to face strong competition and customers will have enough access to alternative suppliers in all markets affected.
The German incumbent agreed to acquire the infrastructure-based telco, which provides telecoms and ICT services to business, carrier and government customers, from a consortium of private equity firms in November 2013 in an effort to boost its fixed-line infrastructure in the region.
The two companies have overlapping activities in several markets in Poland, Hungary, Romania and the Czech Republic. GTS’ Slovak assets will be retained by the sellers as part of the transaction.
DT board member for Europe and technology Claudia Nemat said the company is pleased it can now close the transaction, which it expects to happen in the coming weeks, and start integrating GTS.
“It fits perfectly into our strategy of building a pan-European network and strengthens our position with business and multinational customers,” she said. “Moreover, it will enable us to offer our wholesale customers competitive, high-quality services.”
