The Norwegian Competition Authority has approved the merger of TeliaSonera and Tele2’s local mobile units, after they agreed conditions that cut its value by roughly 12% to SKr4.5bn (US$544m).
The remedies include selling the customer base of…
The Norwegian Competition Authority has approved the merger of TeliaSonera and Tele2’s local mobile units, after they agreed conditions that cut its value by roughly 12% to SKr4.5bn (US$544m).
The remedies include selling the customer base of Tele2’s Network Norway mobile unit, which it bought in 2011 for US$141.3m, to new entrant Ice Communication.
Sweden-based TeliaSonera has also signed a national roaming agreement with Ice, whose owner Access Industries surprised analysts when it beat Tele2 in a spectrum auction in 2013.
The conditional approval comes after the NCA issued a statement of objections in December over the deal, which reduces the number of Norway’s established mobile players from three to two, including incumbent telco Telenor.
“It was never our intention to divest our Norwegian operations,” said Mats Granryd, CEO of the Tele2 group, which is also based in Sweden.
“However following a complex auction process at the end of 2013, the only valid alternative for us was a full exit from the country. We are happy that the Norwegian authorities have accepted the increased remedies, thereby allowing us to proceed to closure very quickly. We are very proud of what we have accomplished since we entered the Norwegian market in 1995.”
Tele2 expects a capital gain of roughly SKr1.8bn upon closing the transaction in two weeks. Its board will recommend an extra ordinary dividend payment of SKr4.5bn during its next AGM in May, in addition to the already announced dividend payment of SKr4.85 per ordinary A or B share.
TeliaSonera said the remedies will make it possible for a third player to establish itself in the market, as it reiterated ambitions to reach 98% of the population with 4G next year – two years ahead of what the NCA requires.
“This is good, not only for our and Tele2’s customers, but also for Norway as a whole,” said TeliaSonera CEO Johan Dennelind.
“We will be a stronger and more credible alternative to Telenor on their home market. We will now further accelerate the roll-out of mobile internet.”
