The Austrian Competition Authority (Bundeswettbewerbsbehorde, BWB) has approved the sale of Swedish telecoms group Tele2’s local business to Hutchison Drei Austria for EUR95 million (USD112.4 million). The transaction, which was first announced in July this year, is expected to close by the end of the month. With annual revenue of around EUR1 billion and approximately four million mobile, fixed line and broadband revenue generating units (RGUs), Hutchison Drei says the merger with Tele2 will create Austria’s largest alternative telecoms provider to incumbent A1 Telekom. The takeover will enable Hutchison Drei, which is owned by Hong Kong’s CK Hutchison, to offer a fully-integrated quad-play offering of mobile, fixed telephony, television and internet services, via Tele2’s unbundled fixed line and fibre-optic networks, and its own 4G LTE infrastructure. For its part, Tele2 said the transaction enables its continued focus on growth opportunities in markets where the company can be the ‘customer champion of connectivity’ on its own infrastructure.
Tele2 will receive a consideration of EUR85 million at closing and up to EUR10 million in the form of an earn-out to be paid up to 24 months after completion, depending on the success of the integration process.