Romania’s competition authority has approved the acquisition of a 50% stake in Netcity Telecom and Concesiune Telecom from E-INFRA Holding by French asset manager Meridiam, reports SeeNews. ‘Following a review of the transaction, the Competition Council has found that it does not raise significant obstacles to effective competition in the market, in particular by establishing or strengthening of a dominant position,’ the anti-trust body said in a statement issued last Friday.
Netcity Telecom operates Bucharest’s 1,760km long underground fibre-optic network. Concesiune Telecom does not carry out operations, its purpose being to ensure guarantees for the execution of the concession agreement concluded with the Bucharest municipality in order to develop the Netcity network.
In December, Meridiam announced that it had acquired a co-controlling stake in the two companies from E-INFRA in order to accelerate the development of the fibre-optic network in Bucharest. The value of the transaction was not disclosed. Netcity Telecom and Concesiune Telecom are now 50% owned by Romanian internet service and infrastructure provider Direct One, which is part of E-INFRA Holding alongside Electrogrup and Nova Power & Gas. Direct One bought Netcity from Romanian information and technology holding UTI in 2016.