Cgates abandons Splius acquisition

30 Jul 2019

Lithuania’s Competition Council has announced it has closed its investigation into the proposed acquisition of Splius by Cgates, after receiving notification that Cgates had abandoned the transaction. In January Cgates, Lithuania’s second largest fixed broadband operator by subscribers, notified the competition authority that it planned to purchase 100% of smaller rival Splius, which operates mainly in northern and western Lithuania.

On 6 June the Competition Council informed the parties that the intended merger would lead to a significant restriction of competition in the relevant retail pay-TV and fixed internet markets in Siauliai, which could in turn result in higher prices for consumers. Following the preliminary conclusions, Cgates proposed commitments to the Competition Council, but on 5 July requested the authority close the examination as it had abandoned its plans to implement the transaction.

Lithuania, Cgates, Splius