EU Approves Spain’s Orange-MasMovil Merger with Conditions

The European Union’s antitrust authority has given the green light to the proposed merger between Orange’s Spanish business and local telecom giant MasMovil. However, the approval comes with strings attached, as the European Commission imposes certain conditions to ensure fair competition in the telecommunications market.

The approval, announced on Tuesday, is contingent upon the adherence to a set of remedies put forward by both parties. Among these conditions is the requirement for Orange and MasMovil to divest telecom spectrum to Romania’s Digi Communications. Additionally, an option for Digi to enter into a national wholesale agreement has been mandated.

The European Commission, serving as the antitrust watchdog for the EU, emphasized the necessity of these remedies to address potential concerns regarding market dominance and to maintain a competitive landscape within the telecommunications sector.

Read more: EU To Warn Orange Over $19 Billion Masmovil Deal

In response to the decision, both Orange and MasMovil expressed satisfaction with the outcome. They highlighted the perceived balance of the remedies, emphasizing that they favor the preservation of existing competition in the market. The companies affirmed their commitment to complying with the conditions set forth by the EU.

The proposed merger between Orange and MasMovil was initially announced in July 2022. Upon completion, the merger will result in the formation of a telecom powerhouse in Spain, boasting an enterprise value, including debt, of approximately 18.6 billion euros ($20.05 billion).

With the regulatory hurdle now cleared, Orange and MasMovil are poised to move forward with their consolidation plans. Both companies have stated their intention to finalize the merger by the end of the first quarter of this year.

Source: Morning Star