Six provincial telcos to merge with Finnet

8 Feb 2007

Six provincial telephone companies have announced that they will merge with the Finnet Group no later than the start of next year. Oulun Puhelin, Lännen Puhelin, Päijät-Hämeen Puhelin, Satakunnan Puhelin, Lohjan Puhelin and the telecommunications operations of Enfo Group are all involved in the deal. According to Finnet, motivation for the merger is ‘to achieve more efficient growth in broadband activities’. This could mean an expansion into the Helsinki region, where Finnet currently does not offer any high speed internet services. Finnet had tried to gain a foothold in the broadband market in the capital about two years ago, the the experiment ended last year when it sold the business to the company 24 Online.

The owners of the companies in the merger will retain ownership in the new company, with the exception of Lohjan Puhelin, whose business operations are to be bought out by Finnet for an undisclosed price. The merger will require the approval of competition authorities. It is possible that the new company will eventually be listed on the Helsinki Stock Exchange.

Finland, Finnet