Eelco Blok, the CEO of Dutch incumbent KPN, said that a deal in Germany between its subsidiary E-Plus and Telefonica’s O2 could make sense, according to reports.
Both companies are currently competing with dominant operators Vodafone and Deutsche…
Eelco Blok, the CEO of Dutch incumbent KPN, said that a deal in Germany between its subsidiary E-Plus and Telefonica’s O2 could make sense, according to reports.
Both companies are currently competing with dominant operators Vodafone and Deutsche Telekom’s T-Mobile.
Speaking at a telecom event in Barcelona, Blok reportedly added that, so far, nothing has been happening but that a merger could be an interesting scenario.
Synergies of US$4bn could be created from a combination of the two German operators, he said.
At the same time Vodafone is also seen as potentially interested in O2. Vittorio Colao, the CEO of the British company, was recently quoted saying that the company could consider further consolidation in Germany.
In 2000, Vodafone bought Germany’s Mannesman for £112bn, which was the largest merger in history at the time. Now, according to some experts, O2 may be Vodafone’s next potential target.
The German mobile market is currently populated with four mobile network operators, the largest one being T-Mobile, followed by Vodafone, O2 and KPN’s E-Plus.
Some experts believe that mergers in Germany could prompt a consolidation wave throughout the rest of Europe. It remains to be seen, however, whether German regulators would allow another large-scale combination.
