Green light for Orange-MasMovil merger

Green light for Orange merger

MERGER: Orange-MasMovil will be headquartered in France Photo credit: orange.com

After a lengthy in-depth scrutiny of the €18.6 billion deal, Brussels cleared the Orange-MasMovil merger on February 20.

But there are strings attached as the EU’s Competition regulator had previously feared that creating the largest operator in Spain would push up prices for mobile customers by more than 10 per cent.

As a result, Brussels is obliging the newly-formed company to cede three of its frequency spectrum bands to Romania-based Digi.

“The commitments offered by the parties will enable Digi, the largest and fastest-growing mobile virtual network operator in Spain, to replicate the strong competitive pressure exerted by MasMovil,” announced Competition commissioner Margrethe Vestager.

Digi will also receive an option for a national roaming agreement, the commissioner said.

Between them, the merged companies will have 7.3 million broadband clients, more than 30 million mobile phone clients and approximately 2.2 television subscribers.  This gives them more customers than any other Spanish telecommunications company, pushing Telefonica into second place for the first time in its history.

The new company, which will continue to be headquartered in France, envisages annual revenues of €7.4 billion with a gross operating profit of roughly €2.4 billion.

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Written by

Linda Hall

Originally from the UK, Linda is based in Valenca and is a reporter for The Euro Weekly News covering local news. Got a news story you want to share? Then get in touch at editorial@euroweeklynews.com.

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