European Commission Approves Deutsche Telekom Plan to Buy GTS Central Europe
April 15 2014 - 5:30AM
Dow Jones News
Deutsche Telekom AG's plans to buy peer GTS Central Europe for
546 million euros ($755.4 million) from a group of private-equity
firms, has received approval by the European Commission, the
European Union's executive body.
"Customers would still have sufficient alternative suppliers in
all markets affected," the Commission said in a statement Tuesday.
It examined the effects of the merger on competition in several
markets in Hungary, Romania, the Czech Republic and Poland, where
the parties have overlapping activities or vertical links.
GTS's current owners, a consortium including private-equity
firms Columbia Capital, HarbourVest Partners, Innova Capital and
M/C Partners, will retain the Slovakian activities.
The activities of the two telecoms groups overlap on wholesale
leased lines and retail business connectivity in Hungary and
Romania. They also offer services for domestic call transit
services in the Czech Republic and Hungary.
The acquisition would not raise any competition concerns in
these markets, the Commission concluded. In particular, the
Commission found that other strong players, such as Invitel and UPC
in Hungary, Telefonica and Dial Telecom in the Czech Republic and
Orange and Vodafone in Romania, will continue to compete with the
merged entity in these markets.
A purchase of GTS would be a further step to develop an
integrated mobile and fixed-line network, Deutsche Telekom Chief
Financial Officer Timotheus Höttges said last year when announcing
the deal.
Write to Frances Robinson at frances.robinson@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
Harbourvest Global Priva... (LSE:HVPE)
Historical Stock Chart
From Jun 2024 to Jul 2024
Harbourvest Global Priva... (LSE:HVPE)
Historical Stock Chart
From Jul 2023 to Jul 2024