Telefonica sells shops to Drillisch to reduce overlap following E-Plus deal

27 May 2015

German mobile service provider Drillisch has agreed to purchase up to 301 shops from Telefonica Deutschland, Germany’s largest mobile network operator by subscribers. Telefonica Deutschland decided to sell the shops to reduce overlap in its retail network following its purchase of E-Plus from Dutch telecoms group KPN for EUR8.55 billion (USD9.3 billion) in October last year. The agreement will see Drillisch taking over both the shops themselves and around 300 employees via its subsidiary yourfone, while a number of office and field staff will also switch to Drillisch to help set up the retail organisation. ‘For us this agreement is a good opportunity to set up our own shop network and expand our market position with the help of established shops of Telefonica Deutschland,’ commented Paschalis Choulidis, executive board spokesman of Drillisch. Telefonica said it aims to cut its roughly 1,750 shops by a third over the next five years to reduce its presence following the E-Plus takeover.