The European Commission announced it would decide on whether to clear the proposed acquisition of Germany’s E-Plus by July 3, according to reports.
Telefonica is looking to acquire E-Plus, owned by KPN, for $11.8 billion. But the merger has raised eyebrows among competition authorities; the Commission took over the merger review from German authorities in efforts to promote a streamlined telco regulatory regime, especially considering that this deal will reduce the number of wireless competitors in the nation from four to three.
In a statement, Telefonica’s German unit Telefonica Deutschland said the deadline extension is not abnormal and does not necessarily mean the Commission will not clear the deal. Telefonica has already offered several concessions to appease competition concerns regarding the acquisition.
The Spain-based telco giant is reportedly discussing plans to set up a new wireless entrant in Germany to take E-Plus’s place.
Full content: Reuters
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