Spanish incumbent Telefonica has finalised its €8.6bn (US$11.34bn) acquisition of German mobile operator E-Plus from Dutch telco KPN.
As previously agreed, the Spanish group will retain a 62.1% stake in its local unit Telefonica Deutschland, which…
Spanish incumbent Telefonica has finalised its €8.6bn (US$11.34bn) acquisition of German mobile operator E-Plus from Dutch telco KPN.
As previously agreed, the Spanish group will retain a 62.1% stake in its local unit Telefonica Deutschland, which now includes 100% of E-Plus, while KPN will hold a 20.5% interest in the combined entity. The remaining shares are publicly traded.
Telefonica said in a statement today that the deal enables it to become the largest mobile player in Germany with around 41 million mobile accesses, combined revenues of approximately €8bn and expected synergies of €5bn.
The Spanish group also said it is now the second-largest operator in Europe in terms of subscribers and revenues.
“Thanks to the conclusion of the acquisition of E-Plus, the recent acquisition of GVT and the commercial revolution which has transformed the Spanish market, Telefonica has gained a leading position in three of its most important markets: Germany, Brazil and Spain,” Telefonica said.
At the end of August, the European Commission rubber-stamped the deal after a lengthy regulatory review. To secure approval, the companies agreed to guarantee local MVNOs access to their networks in order to preserve competition.
To finance the €5bn cash consideration of the deal, Telefonica Deutschland raised €3.6bn through a rights issue a few days ago. Meanwhile, its parent issued €1.5bn worth of convertible notes.
E-Plus CEO Thorsten Dirks will head the combined company. Telefonica Deutschland CFO Rachel Empey and COO Markus Haas will continue in their respective role on the management board of the new entity.