The European Commission (EC) has rejected Germany’s request to review Telefonica Deutschland’s (O2) €8.55bn (US$11.7bn) acquisition of mobile operator E-Plus from Dutch telco KPN.
The EC, currently conducting an in-depth phase II review of the…
The European Commission (EC) has rejected Germany’s request to review Telefonica Deutschland’s (O2) €8.55bn (US$11.7bn) acquisition of mobile operator E-Plus from Dutch telco KPN.
The EC, currently conducting an in-depth phase II review of the planned deal, said it has concluded it is “better placed” to assess the case given its experience in assessing mergers in the mobile sector and the need for a consistent application of merger control rules in the EU.
The EC received notification of the deal on 31 October and has until 14 May to take a final decision.
Germany’s Federal Cartel Office (FCO) asked for permission to review the deal itself in November and submitted a reminder request earlier this month. However, TelecomFinance understands the EC rejection did not come as a surprise to the German regulator, which will still be able to provide input on the review.
“The Commission will nonetheless continue to cooperate closely with the German authority in the assessment of the proposed transaction,” the Brussels-based authority said.
The review of the planned merger is being closely watched by many as it would reduce the number of mobile operators in the German market from four to three.
In December, the EC expressed concern that “the transaction would remove an important competitive force and change the merged entity’s incentive to exert significant competitive pressure on the remaining competitors”. Earlier this week, news emerged that the Commission sent out questionnaires to third parties seeking input on the likely effects of the deal.
Separately, O2 CEO Rene Schuster has stepped down from the role. His responsibilities will be transferred to CFO Rachel Empey and chief strategy officer Markus Haas, who will lead the management board together.
