Kabel Deutschland gives up on Tele Columbus

25 Sep 2013

German cable operator Kabel Deutschland has abandoned a bid to acquire smaller rival Tele Columbus that was blocked by antitrust regulators earlier this year. Bloomberg quotes Kabel Deutschland spokesman Marco Gassen as saying that the cable operator, which is in the process of being bought by UK-based Vodafone Group, has withdrawn its appeal against the Bundeskartellamt’s decision to block its purchase of Tele Columbus. ‘The success of Vodafone’s takeover bid means the competitive conditions have changed,’ Gassen said, adding: ‘Pursuing a probably time-consuming court case no longer makes any sense.’ Earlier this month Vodafone secured the minimum 75% shareholder acceptance for its EUR7.7 billion (USD10.1 billion) purchase of Kabel Deutschland and the deal was subsequently approved by the European Commission.

TeleGeography’s GlobalComms Database notes that Kabel Deutschland, which has a network serving around 8.5 million households in 13 out of 16 states, entered into an agreement to acquire Tele Columbus for around EUR618 million in May 2012, but in February 2013 the Bundeskartellamt prohibited the deal, after determining that the planned acquisition would have a negative impact on competition in the market.

Germany, Kabel Deutschland, Tele Columbus Group (PYUR)