The European Commission on Monday denied an application by Spain’s competition authorities to review Orange’s proposed purchase of Jazztel.
In November, the Comision Nacional de los Mercados y la Competencia (CNMC) petitioned Brussels to allow it to assess Orange’s €3.4 billion acquisition of Jazztel under Spanish competition law.
"In the present case the Commission concluded that, given its extensive experience in assessing cases in this sector, it is better placed to deal with the transaction and ensure consistency in the application of merger control rules in the fixed and mobile telecommunications se ctors across the EEA (European Economic Area)," said the European Commission, in a statement on Monday. "The Commission will nonetheless continue to cooperate closely with the Spanish competition authority in the assessment of the case."
France-based Orange made a €13-per-share offer for Jazztel in September, valuing the Spanish fixed-line provider at €3.4 billion.
Integrating Jazztel will strengthen Orange’s position in Spain by enabling it to offer multi-play services that rival incumbent operator Telefonica.
In December, Brussels opened an in-depth investigation into the deal’s potential impact on competition.
Last week, the Commission pushed back its deadline to make a decision on the merger after the investigation was temporarily suspended pending receipt of further information from Orange. It is due to make its decision by 30 April.
