Report: EU has misgivings about merger of O2 and E-plus2014-03-21 | Comebuy News
European cartel guards allegedly have misgivings about the planned acquisition of E-Plus by the O2 mother Telefónica Germany. As Bloomberg reported, the European Commission is concerned that the merger could hurt competition. Therefore, she wants to present their objections soon.
Through the merger, the number of mobile network operators in Germany from four to three is shrinking. The European Commission is investigating the possible consequences for consumers and mobile providers without their own networks since December.
"This is a normal process for testing complex acquisitions," quoted Bloomberg Robin Beehive, analyst at Sanford C. Bernstein. "We assume still approve the deal under certain conditions."
Already 2012 competition Commissioner Joaquín Almunia had spoken out against a simplification of mergers in the telecommunications industry. The national markets are already highly concentrated due to the small number of network operators. Network operators could not grow at the expense of the users due to higher prices and less quality service, he said according to Bloomberg on Tuesday in Brussels.
According to sources from Reuters, the EU KPN will send their official "statement of objections" to Telefónica Germany and the E-plus mother probably in the coming week. They can enter the concerns own concessions such as the sale of business units. You also have the right to a hearing. According to information from Bloomberg, the EU wants to decide on the merger of O2 and E-plus until May 14.
Telefónica Germany had announced the acquisition of E-Plus for 8.3 billion euros in July 2013. Both companies on 43 million customers come together in this country. So that the joint venture would become one in the German mobile market the number.