EU: EC offers clues to telco consolidation stance with merger probe

The European Commission announced Monday it will launch a merger investigation into Liberty Global’s planned acquisition of Netherlands-based telco Ziggo, a move reports say will offer some insight for investors looking to gauge how the EU responds to telco consolidation.

The $9.6 billion merger, first announced in January, would reportedly give Liberty access to 90 percent of Dutch households as the company also owns the Netherlands’ second-largest cable operator UPC.

While the Commission has until April 23 to rule on the acquisition, Dutch competition regulators said they plan to request jurisdiction over the merger review on account that the transaction mainly affects consumers in the Netherlands. According to experts, however, a review by the Commission will more likely lead to clearance of the deal.

The transaction was announced as telcos requested overhauled merger policy by the European Commission in favor of facilitated market consolidation, while the Commission seeks a single telco market throughout the EU.

Full Content: Wall Street Journal

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