John Malone’s Liberty Global has reached a settlement with the two German operators which objected to its 2011 takeover of Kabel BW, which was later merged with the pan-European cable group’s local unit to create Unitymedia Kabel BW.
Incumbent…
John Malone’s Liberty Global has reached a settlement with the two German operators which objected to its 2011 takeover of Kabel BW, which was later merged with the pan-European cable group’s local unit to create Unitymedia Kabel BW.
Incumbent Deutsche Telekom and triple-play operator NetCologne have withdrawn their appeals against Germany’s Federal Cartel Office (FCO) for approving the deal, Unitymedia KabelBW revealed in its latest earnings report.
A settlement was reached during the fourth quarter of last year and the FCO consented to the appeal withdrawal on 21 January this year.
Unitymedia noted that the competition regulator’s clearance of the 2011 deal will become final and binding once the Federal Court of Justice terminates the proceedings, expected to occur this quarter. Once this happens, another of Liberty’s subsidiaries will make a payment to the appellants. The size of the payment was not disclosed.
In August 2013, a German higher regional court overturned the FCO’s clearance of the approximate US$4.1bn takeover, saying the regulator did not demand tough enough concessions. The court said the FCO should re-examine whether the merger could be permitted under amended terms. If not, the court said the deal must be undone.
At the time, a spokesperson for Liberty said the company was convinced that, given the ongoing market consolidation in Germany, there was a real need for Unitymedia KabelBW to be able to compete effectively.
UK-based Vodafone has since acquired cableco KDG, while Telefonica Deutschland (O2) has taken over local mobile operator E-Plus.
