Telefonica modifies concessions for E-Plus deal

2 May 2014

Telefonica Deutschland has amended its offer of concessions in a bid to secure European Commission (EC) approval for its proposed acquisition of German mobile operator E-Plus, Reuters reports, quoting company spokesperson Albert Fetsch. Telefonica Deutschland, a unit of telecoms group Telefonica, last month offered to lease some spectrum to a rival German mobile operator to gain approval for the EUR8.55 billion (USD11.9 billion) takeover, and the EC subsequently asked competitors and third parties to comment on the package. ‘As is usual in such processes, we have now filed a modified remedy package with the EC, which is based on the feedback of the first market test. We cannot comment on any details of the remedies,’ Fetsch said. The EU antitrust authority is now seeking a further round of feedback until 5 May, two people familiar with the matter said. The EC’s decision on the deal is expected by 23 June.

Netherlands-based KPN agreed to sell E-Plus to Telefonica in July 2013 and in December the EC opened an in-depth investigation into the transaction, which if allowed would reduce the number of network operators from four to three, with the enlarged Telefonica becoming the market leader ahead of Telekom Deutschland and Vodafone Germany.

Germany, E-Plus Group, KPN, Telefonica, Telefonica Deutschland Holding