The Norwegian Competition Authority (NCA) has cleared the proposed acquisition of Tele2 Norway by TeliaSonera, reversing its earlier intention of blocking the deal over competition concerns.
Approval is subject to a package of concessions, including the conclusion of a roaming agreement with new market entrant Ice and the sale of Tele2’s mobile network and mobile operator Network Norway to Ice.
The move follows the submission by TeliaSonera in January of a new proposal to the competition body in a bid to win approval for the bid.
“In our discussions with TeliaSonera, the Competition Authority made it clear that a third network operator with a certain customer base is vital to ensure continued competition on price and quality. The commitments offered by TeliaSonera provide a real opportunity for a third mobile network operator to enter the market and to compete for Norwegian mobile customers,” said NCA director general Gjermund Nese.
The NCA noted that TeliaSonera’s acquisition of Tele2 came about after a spectrum auction in December 2013 where Tele2 lost most of its spectrum to Ice. “This put Tele2’s Norwegian business in a difficult position,” the competition authority added.
In October last year, Tele2 said its Norwegian unit had brokered a deal that would see it sell network infrastructure to Ice if regulatory authorities gave the go-ahead to its takeover by TeliaSonera.
The telco also agreed to lease spectrum in the 900-MHz band from Ice for six months, effective immediately, to ensure continuity of service for its customers pending a decision from the NCA on the takeover.
Teli aSonera agreed to acquire Tele2 Norway in July for 5.1 billion Swedish kronor (€539 million). Tele2’s exit from Norway was not unexpected given its failure to win spectrum in the 2013 auction.
Because the customer base of Network Norway is to be sold to Ice, TeliaSonera and Tele2 have agreed to adjust the enterprise value to SEK 4.5 billion. TeliaSonera also reiterated its ambition to provide 98% population coverage for 4G in Norway next year – two years ahead of requirement.
