Hutchison Drei Austria, a wholly-owned subsidiary of CK Hutchison, has completed the EUR95 million (USD112 million) acquisition of Swedish telecoms group Tele2’s Austrian unit, enabling the combined entity to offer a complete service portfolio of fixed line, mobile, internet, TV and IT solutions. With annual revenue of around EUR1 billion and approximately four million mobile, fixed line and broadband RGUs, Hutchison Drei says the merger with Tele2 has created Austria’s ‘largest alternative telecommunications provider’ to incumbent A1 Telekom.
In the upcoming months, Tele2 will continue as a Hutchison Drei Austria subsidiary, with the legal aspects of the company merger and the rebranding expected to take place in Q2 2018. After the consolidation, Drei plans to roll out ‘new offers of complete telecommunication and IT, as well as innovative bundle for its residential customers’.
‘With this acquisition, Drei and Tele2 have merged into an alternative telecommunications full service provider. With the successful integration of Tele2 we will prove once again that one and one can make three,’ commented Drei CEO Jan Trionow, adding: ‘We want to stimulate Austria’s price and offer-based competition in the landline segment. Austria’s Competition Authority, which approved the acquisition by mid-October, also concluded that the merger could have a positive effect for the competition as more bundle offers will emerge (mobile/fixed line and broadband).’