News
The move would see the largest and second largest operators in Romania combine
Orange Romania has today announced that it has signed a deal to acquire rival operator Telekom Romania for €268 million.
Orange will acquire the controlling 54% stake in the company from Greek company OTE, which is itself majority owned by Deutsche Telekom. The remaining 46% stake is owned by the Romanian government, which last week confirmed that it had no intention of selling their equity in the business.
The deal values Telekom Romania at €497 million in total.
Telekom Romania currently has around five million customers, of which 1.2 million are TV subscribers and around 930,000 receive broadband services. Its network spans around 90,000 km and connects around three million households.
Orange Romania sees the move the natural progression of their convergence strategy, arguing it will increase competition and the options available for their customers.
“This acquisition is an important step to accelerate our convergence strategy in Europe. Romania is a key market for Orange and a great success story,” said Mari-Noëlle Jégo-Laveissière, deputy CEO of Orange Europe. “This transaction confirms our long-term commitment to the Romanian market. We are looking forward to contribute to the development of the telecoms sector through sustained investments in top performing network infrastructures and innovative services.”
“It is an important moment for the Romanian telecommunications market, which will increase its attractiveness both in terms of converged telecom services and high quality infrastructure, while increasing competition,” added Orange Romania CEO Liudmila Climoc. “This transaction will bring new opportunities for the development of converged services, with more benefits and a wider range of options for customers, but also for the sustainable development of the digital economy.”
For OTE, the cash generated from this sale will be vital for their continued investment in 5G back home in Greece.
The deal is subject to typical regulatory checks and is expected to close in the second half of 2021.
Also in the news:
Today’s headlines from The 5G Daily
Huawei makes a stand against Sweden’s 5G ban
T-Mobile warned against overselling its 5G network in latest advert
