Bankers and lawyers acting for some of Europe’s largest telecoms companies are anticipating a bonanza of deals on the back of a court ruling last month that dealt a blow to the EU’s strict competition policy, reported the Financial Times.
At the end of May, the General Court, the EU’s second-highest court, overturned the European Commission’s 2016 decision to block the £10.25bn takeover of O2 in the UK by its smaller rival Three, owned by Hong Kong conglomerate CK Hutchison.
The ruling has potentially paved the way for a new round of consolidation in the telecoms sector, antitrust experts said. Its impact could also stretch into other industries, including steel, where the merger of Tata Steel and Thyssenkrupp was thwarted by the commission last year, as companies look to strengthen their hand.
Markets where there are still four mobile telecoms operators, such as Denmark and Sweden, have been tipped as candidates for consolidation. Hutchison, which struck deals to buy mobile rivals in Italy, Ireland and Austria before it was thwarted in the UK, is a potential consolidator, according to one person with direct knowledge of the company’s strategy. Hutchison declined to comment.
Margrethe Vestager, the EU’s competition commissioner, was opposed to a telecoms merger in her native Denmark in 2015. This led to the abandonment of a deal between Telia and Telenor to merge in the country, say people with direct knowledge of the matter.
Full Content: Financial Times
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