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Orange and Masmovil are set to receive conditional EU antitrust approval for their merger, according to two sources in a Reuters report
The European Commission’s approval is conditional on Romania’s Digi acquiring spectrum from MasMovil and an option for a national roaming service agreement with Orange, the two sources said.
Digi, who also have operations in Spain, Portugal, Italy, and Belgium, finalised a spectrum transfer agreement with the two Spanish firms last month, worth €120 million. The spectrum acquired would be 2x10MHz in the 1,800MHz band, 2x10MHz in the 2.1GHz band, and 20MHz in the 3.5GHz band.
The deal for the two companies to combine their Spanish operations was first announced in June 2022. The merger, worth €18.6 billion, will see the markets second (Orange) and fourth (MasMovil) largest telcos combine to create the market leader in both the mobile and fixed broadband segments, with each taking a 50% stake in the joint venture.
The dominant market position of the combined business has led to scrutiny from European regulators, concerned that the move would decrease competition and drive up prices in the Spanish market. The two firms, of course, disagree, arguing that it will allow them to invest more more heavily in the nation’s connectivity infrastructure.
If the deal does receive approval, it will mark a turning point in the rigidity of European Commission policies on mergers that reduce the number of main players in the market from four to three. The European Commission has historically not been in favour of such transactions; for example, blocking Three’s planned takeover of O2 in 2016.
The European Commission is due to decide on the deal by 15th February.
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