FT, TDC ink final accord to merge Swiss units

12 Apr 2010

Danish telecoms operator TDC has announced the signing of a final agreement with France Telecom (FT) to combine their respective Swiss subsidiaries Orange Communication (Orange Switzerland) and Sunrise Communications, following the completion of due diligence. The deal is consistent with the terms of the transaction announced on 25 November 2009 and is expected to be completed in the second quarter of 2010, once approvals have been obtained from the local competition and relevant regulatory authorities. Jesper Ovesen, CFO at TDC noted: ’This transaction creates a stronger and more efficient operator in the Swiss market. We are very pleased with our continuing cooperation with France Telecom in this market and look forward to creating further value for all stakeholders.’ As reported by CommsUpdate, FT will pay EUR1.5 billion (USD2.24 billion) to TDC and, as a result of a series of steps, become a 75% shareholder in the combined entity, with TDC holding the remainder. With approximately 3.4 million mobile and 1.1 million fixed and broadband customers, the merged company will account for around 38% of the mobile telephony market and 13% of the country’s fixed broadband connections.

Switzerland, Orange Group, Salt (Switzerland), Sunrise Communications