UK-based Vodafone Group’s proposed acquisition of Cable & Wireless Worldwide (CWW) has been given the all clear by European Union (EU) regulators, with no conditions imposed on the company in order for the deal to progress. According to Dow Jones Newswires, the European Commission (EC) noted in a statement on the matter that it believed that the purchase of CWW would raise ‘no competition concerns, as the parties’ activities are largely complementary’. The Commission did recognise that there is some overlap in the two companies areas of activity in the United Kingdom, but suggested that the combined entity is likely to face significant competition from rivals there, and as such was unlikely to distort the local market.
As previously reported by CommsUpdate, in April 2012 Vodafone Group revealed that it had reached an agreement to acquire CWW for approximately GBP1.044 billion (USD1.6 billion) in cash, with the former expected to use CWW’s fibre network to bolster bandwidth for customers’ increasing demand for data services on its mobile network. Commenting on the deal at the time of its announcement, Vodafone Group CEO Vittorio Colao noted: ‘The acquisition of Cable & Wireless Worldwide creates a leading integrated player in the enterprise segment of the UK communications market and brings attractive cost savings to our UK and international operations.’ Last month, meanwhile, a CWW shareholder ballot on the issue saw 87.5% vote in favour of Vodafone’s proposal, easily surpassing the 75% approval level required for the deal to progress.