EU Approves Orange and MasMovil Combination, With Conditions
The European Commission has given the green light to the merger between Orange and MasMovil, two prominent players in the Spanish telecommunications market. However, the approval comes with a set of conditions that the parties must comply with.
In order for the deal to proceed, Orange and MasMovil will need to adhere to a package of remedies offered to address any potential antitrust concerns. One of these remedies is the sale of telecom spectrum to Romania’s Digi Communications. Additionally, the agreement includes an option for Digi to enter into a national wholesale agreement.
Both Orange and MasMovil have expressed their satisfaction with the decision, stating that the remedies provided are fair and beneficial to an already established player in the market. The companies are aiming to finalize the merger by the end of the first quarter.
The planned combination between Orange and MasMovil was initially announced in July 2022. The merger is expected to create a business entity with an impressive enterprise value of 18.6 billion euros.
The approval from the European Union’s antitrust authority is a significant step forward for Orange and MasMovil, as it paves the way for the creation of a major telecommunications player in Spain. With the conditions set in place, the companies can now focus on completing the merger and capitalizing on the potential synergies and opportunities it presents.
Analyst comment
Positive news: EU Approves Orange and MasMovil Combination, With Conditions
As an analyst, I predict that the market will react positively to the news of the EU’s approval of the Orange and MasMovil merger. The conditions set by the antitrust authority ensure fair competition and address potential concerns, allowing the companies to proceed with the merger. This will create a major telecommunications player in Spain and present opportunities for synergies and growth. The market is likely to see an increase in investor confidence and potential for market expansion.
