Liberty Global has offered commitments in the Ziggo takeover investigation to address antitrust concerns expressed by the European Commission.
The Brussels based regulator said on its website that the remedies were submitted yesterday. It did not give…
Liberty Global has offered commitments in the Ziggo takeover investigation to address antitrust concerns expressed by the European Commission.
The Brussels based regulator said on its website that the remedies were submitted yesterday. It did not give details.
The EC opened an in-depth investigation into Liberty Global’s €4.9bn acquisition of the Netherlands’ largest cableco in May because it worries that the tie-up could lessen competition in a number of pay-TV and telecommunications markets in the Netherlands where Liberty’s local cableco UPC operates.
It believes that even though Liberty Global and Ziggo’s cable networks do not overlap geographically, they exert indirect competitive pressure on each other. A merger between the two could create a high level of concentration and high barriers to entry.
The combination of the cablecos would create a company which reaches about 7 million customers – 90% of Dutch households – and generates about €2.5bn in total revenue. UPC Netherlands is the nation’s second largest cableco. The deal values Ziggo at 11.3x its 2013 EBITDA.
Liberty’s CEO Mike Fries argued previously the deal will create “a nationwide cable champion that will drive investment and innovation for the benefit of Dutch consumers and businesses alike”.
The deadline for the EC investigation is 17 October.
