Denmark’s TDC and France Telecom have abandoned the planned merger of their Swiss mobile units.
Originally proposed last November, the move was blocked earlier this year by the Swiss regulator as it would have created a duopolistic market. The two…
Denmark’s TDC and France Telecom have abandoned the planned merger of their Swiss mobile units.
Originally proposed last November, the move was blocked earlier this year by the Swiss regulator as it would have created a duopolistic market. The two parties had planned to appeal against the ruling, but have now called this off.
In a very brief statement, France Telecom said: “Following the prohibition of the combination of Orange Communication (Orange Switzerland) and Sunrise Communications pronounced by the Swiss Competition Commission on April 22nd 2010, France Telecom and TDC have concluded a detailed analysis of their available options and, as a consequence hereof, terminated their agreement concerning the proposed business combination. The appeal filed with the Federal Administrative Court will also be withdrawn.”
The two subsidiaries are the second and third largest players in the Swiss market after dominant leader Swisscom, and combined would have controlled 38% of the mobile telephony market.
France Telecom had been expected to pay a net amount of E1.5bn to TDC in order to become a 75% shareholder in the combined entity as part of its continuing growth strategy. Conversely TDC, whose private equity owners are planning an exit, had aimed to push the Swiss move through in order to continue its strategy of disposing its non-Nordic assets.
