The German Federal Cartel Office has approved Drillisch’s planned acquisition of 1&1 Telecommunication from United Internet, without any conditions, reports RTTNews.com. The completion of the transaction now remains subject only to approval by Drillisch shareholders at an extraordinary general meeting on 25 July 2017. United Internet and Drillisch agreed a deal on 12 May 2017 to merge the former’s mobile and fixed network business (1&1 Telecommunication) with the latter’s mobile communications business under the umbrella of United Internet, in a move aimed at creating a strong fourth player in the German telecoms market alongside the three major full-service providers Telekom Deutschland, Vodafone Germany and Telefonica Deutschland. As part of the merger deal, United Internet will receive new Drillisch shares from two capital increases by way of contribution-in-kind, increasing United Internet’s stake in Drillisch to at least 72.7%.
The transaction includes a voluntary public tender offer by United Internet to all external Drillisch shareholders, subject to merger control approval – with the decision of the Cartel Office, this condition is fulfilled. The tender offer is now unconditional.