Competition commission blocks deal

8 Jun 2007

Germany’s competition commission, the Kartellamt, has provisionally blocked plans by Kabel Deutschland (KDG) to take an 18.6% stake in fellow cableco PrimaCom. KDG failed to notify the authorities of the deal and Kartellamt is now investigating as to whether the purchase should be allowed under Germany’s competition laws. KDG says it is now in talks with the Kartellamt. The purchase of the PrimaCom stake would enable KDG to hold a ‘Level 4’ (direct) relationship with more of its customers. KDG operates a cable TV network covering 13 out of 16 federal states and passing nearly sixteen million households. It has a ‘to-the-home’ relationship with around a third of its subscriber base.

Germany, Kabel Deutschland, PrimaCom