Belgacom completes Scarlet purchase for lower than expected price

1 Dec 2008

Belgian telco Beglacom has announced the completion of its takeover of broadband operator Scarlet, Reuters reports. The final value of the deal was EUR175 million (USD222.2 million), approximately EUR10 million less than originally planned; the revaluation of the acquisition came after a price review ordered by the Belgian Competition Council (BCC). The BCC ruled in November 2008 that the sale could proceed subject to several conditions, most notably that Belgacom must sell Scarlet’s fibre-optic network and cap broadband tariffs. Scarlet has approximately 180,000 broadband subscribers in the Netherlands, Belgium and the Netherlands Antilles and under the terms of the sale customers will also be allowed to switch broadband provider without any penalties for early contract termination. Belgacom has stated that results from the new subsidiary will be incorporated from 1 December.

Belgium, Coral Telecom (Sint Maarten), Proximus, Scarlet (Aruba), Scarlet (Curacao), Scarlet Telecom (Belgium)