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EU to Scrutinize Telecom Italia’s Network Sale to KKR

 |  May 8, 2024

European Union (EU) antitrust regulators are set to engage with rivals of Telecom Italia (TIM) next week to deliberate over the proposed acquisition of the former phone monopoly’s domestic fixed-line network by U.S. investment firm KKR, as per two insider sources on Wednesday.

The EU Commission, approached for comment on the matter, refrained from providing any official statement.

TIM’s competitors were given until April 30 to respond to EU questionnaires, as relayed by sources to Reuters earlier. The European Union queried rivals about the potential anti-competitive implications of the deal, valued at up to 22 billion euros ($23.6 billion), which encompasses a master service agreement between TIM’s remaining service entity and the future wholesale network operator. The inquiry will assess whether this transaction could impede competition in the market.

Related: EU to Decide on KKR’s Telecom Italia Buyout by May 30

These regulatory apprehensions might precipitate an extensive investigation into the deal, exerting pressure on KKR to propose substantial remedies to alleviate concerns.

The sale forms part of a government-supported initiative aimed at reducing debt and revitalizing TIM. According to reports by Reuters, TIM intends to conclude the deal around the middle of the year, and any delay could complicate the company’s restructuring efforts.

Source: Reuters