A PYMNTS Company

Spain: No pre-conditions expected from regulator on Euskaltel and Orange merger

By  |  January 21, 2019

The vaunted purchase of local telephone company Euskaltel by its British counterpart Orange would not pose regulatory problems, according to analysts at Sabadell, as the four operators that the CNMC has sought to preserve will remain active: Movistar, Vodafone, Orange and Másmóvil.

Meanwhile, the British fund Zegona (15% of Euskaltel) is willing to buy an additional 12.5% ​​of the cable operator to become the main shareholder, edging out Kutxabank (21%). Their goal is to control the company and expand it across the rest of Spain, which could be complicated if the purchase of Orange materializes.

The operation has also aroused short-term concerns, such as the reduction of synergies following the success of the Virtual Mobile Operator agreement that already exists between the companies. The operation could also be affected by the drag of payments for football broadcasting rights, as well as the need to integrate the Euskaltel network with Orange’s optical fiber, requiring significant investment.

Full Content: Hispanidad

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.