Swiss merger ‘dead’

4 Jun 2010

France Telecom and Danish telecom group TDC are abandoning a proposed deal to merge their Swiss operations after competition regulators rejected it as bad for consumers. In April, the Swiss anti-trust regulator blocked the proposed deal on the grounds that it would create a two-player market in which the companies would have incentives to raise prices. Since then, the companies had said they were considering an appeal or other means to salvage the deal but have now decided to abandon it. ‘Following the prohibition of the combination of Orange Communication and Sunrise pronounced by the Swiss Competition Commission on 22 April, France Telecom and TDC have … terminated their agreement concerning the proposed business combination,’ France Telecom said in a statement. ‘The appeal filed with the Federal Administrative Court will also be withdrawn.’

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