EU To Warn Orange Over $19 Billion Masmovil Deal

The proposed merger between Orange and Masmovil Ibercom is facing potential obstacles from EU merger regulators, who have identified competition concerns that must be addressed by the companies.

The European Commission is preparing to release a statement of objections to Orange and Masmovil regarding the potential reasons for blocking the merger between Spain’s second and fourth-largest mobile operators. Sources who wished to remain anonymous because the process is not public provided this information.

As is customary in intricate mergers, the filing will indicate potential resolutions, which in the case of telecom deals may consist of asset sales or access remedies to ensure compatibility with competitors on the new network.

Read more: EU Probes Orange, Masmovil’s Spanish Deal

The EU’s mergers watchdog initiated a thorough investigation in April, cautioning that the partnership could potentially decrease the number of network operators in Spain and that the companies may have the motivation to limit the access of virtual operators to wholesale mobile network and wholesale fixed network access services.

The commission, Orange, and Masmovil have not provided any comments. The commission is expected to reach a final decision by Sept 4, but this timeline is subject to change.