Vodafone has formally requested permission from the European Commission (EC) for its proposed €7.48bn takeover of Germany’s Kabel Deutschland (KDG).
A spokesperson for the UK-based mobile operator’s German unit confirmed today that the filing…
Vodafone has formally requested permission from the European Commission (EC) for its proposed €7.48bn takeover of Germany’s Kabel Deutschland (KDG).
A spokesperson for the UK-based mobile operator’s German unit confirmed today that the filing has been made, meaning the company is on track with its previously-outlined timetable for the transaction. Preceding talks with the commission were positive, the spokesperson added.
The EC is now set to begin an antitrust review of the proposed deal, which is expected to last several weeks. The German antitrust regulator, the Federal Cartel Office (FCO), can apply to the EC to conduct the investigation itself by the beginning of September, but the commission is entitled to decline this. The Commission could choose to launch a phase-two investigation if it has serious reservations about the deal.
Vodafone launched its public takeover offer on 30 July and has given KDG shareholders until 11 September to tender their shares for €87 each, aiming to settle the deal by early June 2014 at the latest. However, Vodafone has said the deal could close as early as October this year if the EC clears the deal after a phase-one investigation.
If all KDG shareholders take up the offer, which has an acceptance threshold of 75%, Vodafone will have to pay a total €7.48bn (US$9.88bn) for 88.5 million shares.
