UK Clears £2B Telecommunication Deal

The Competition and Markets Authority (CMA) has cleared the £2 billion (US$2.46 billion) merger between Cellnex UK and Arqiva’s telecommunication infrastructure division.

Both companies are independent providers of telecommunication infrastructure, including towers, pylons, and masts, across the UK. As a result of the deal, Cellnex will acquire more than 7,000 sites currently operated by Arqiva.

Following a thorough investigation, the CMA has found that the deal does not raise competition concerns in the supply of large telecommunication infrastructure like mobile towers and pylons. Cellnex is only a small player in this market at present and competition between the 2 companies has been limited.

While the CMA has carefully considered whether Cellnex was in the process of expanding its UK presence before the merger, it ultimately found that Cellnex would not have been a significantly stronger competitor if it had not bought the Arqiva business.

The CMA also found that, following the merger, the combined business will continue to face competition from several other independent providers, including WIG and Freshwave Group.

Full Content: Freshfields

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