Saudi Telecom Company (STC) is making headlines with its ambitious plan to acquire a 9.9% stake in Telefonica SA, valued at $2.5 billion. This move has stirred up controversy in Spain, primarily due to concerns about the potential conditions that the Spanish government might impose on the deal.
There’s a possibility that the terms of this acquisition could resemble those applied to IFM Global Infrastructure’s previous acquisition of Naturgy Energy Group SA. These terms included imposing restrictions on asset sales and dividends. This aligns with Spain’s policy of safeguarding its interests in strategically significant companies like Telefonica and Indra Sistemas SA, which are subject to a 10% stake rule.
Read more: EU Telecoms Look For European Commision Clearance For Ad Deal
This strategic investment by STC follows a trend where government-backed Gulf companies have shown interest in European telecoms. A well-known instance is when Emirates Telecommunications Group became the largest shareholder of Vodafone Group Plc.
However, despite the buzz and controversy surrounding this significant deal, the Spanish government seems to have limited information about it. This was confirmed by Economy Minister Nadia Calvino, who stated on Tuesday that they were not yet fully informed about the details of the acquisition.
Source: Investing
Featured News
Uruguayan Antitrust Scrutiny Puts Major Meatpacking Deal Between Marfrig and Minerva on Hold
May 19, 2024 by
CPI
Alaska Airlines Seeks Dismissal of Consumer Lawsuit Over $1.9 Billion Hawaiian Airlines Buy
May 19, 2024 by
CPI
Idaho Attorney General Orders Split of Kootenai Health and Syringa Hospital
May 19, 2024 by
CPI
Court Rejects T-Mobile’s Appeal Bid in Antitrust Case Over Sprint Merger
May 19, 2024 by
CPI
Google Requests Judge, Not Jury, to Decide on Antitrust Case
May 19, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Ecosystems
May 9, 2024 by
CPI
Mapping Antitrust onto Digital Ecosystems
May 9, 2024 by
CPI
Ecosystems and Competition Law: A Law and Political Economy Approach
May 9, 2024 by
CPI
Ecosystem Theories of Harm: What is Beyond the Buzzword?
May 9, 2024 by
CPI
Open Ecosystems: Benefits, Challenges, and Implications for Antitrust
May 9, 2024 by
CPI