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TIM Receives Positive EU Signals for Landmark Network Sale to KKR

By  |  May 28, 2024
KKR

Telecom Italia (TIM) is receiving encouraging signals from EU antitrust authorities who are reviewing the significant sale of its fixed-line access network to the U.S. fund KKR. This was confirmed by the former phone monopoly’s chair on Tuesday.

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    The deal, valued at up to 22 billion euros ($23.9 billion), is part of a broader government-supported strategy to reduce TIM’s substantial debt and rejuvenate the company. However, the transaction is contingent upon the approval of EU antitrust authorities. According to Reuters, TIM aims to finalize the agreement by mid-year, with any potential delays posing a risk to the company’s planned overhaul.

    “Feedback from EU antitrust is positive, so we hope to finalize the deal [with KKR] by the end of June,” TIM chair Alberta Figari announced to reporters during an event in Rome.

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

    The European Union Commission has set a May 30 deadline for its preliminary review of the transaction. According to sources with knowledge of the situation, KKR is expected to receive unconditional approval after agreeing to maintain commercial agreements with TIM’s competitors.

    The sale to KKR is seen as a pivotal move for TIM, offering a much-needed financial boost and a clearer strategic direction. The positive reception from EU regulators adds a layer of optimism to the company’s efforts to streamline its operations and enhance its market position.

    Source: Reuters