Cartel office approves KDG-Orion asset swap

14 Mar 2008

The German cartel office has given the green light to cableco Kabel Deutschland’s (KDG) acquisition of 1.2 million subscribers from rival Orion Cable for EUR585 million (USD907 million), according to the Hollywood Reporter. A KDG spokesperson confirmed that the deal was being waved through, with full official approval expected by early April. As part of the agreement, first brokered in September 2007, KDG is giving up its ambition to take control of rival cableco PrimaCom, instead tendering its 17.5% stake in PrimaCom to Orion. In return, Orion, owner of cablecos Tele Columbus and EWT, is selling certain network assets to KDG, including 1.2 million subscribers in the eight states of Schleswig-Holstein, Hamburg, Bremen, Lower Saxony, Mecklenburg-Western Pomerania, Rhineland-Palatinate, Saarland and Bavaria. In purchasing the Orion assets, KDG will gain a direct relationship (level 4, or ‘to-the-home’) with more subscribers in these states, where it already has backbone (level 3) operations. This will give the company more control over network upgrades and rollouts for triple-play services.

Germany, Kabel Deutschland, PrimaCom, Tele Columbus Group (PYUR)