Deutsche Telekom is set to win unconditional approval from the European Commission for its planned takeover of Tele2 Netherlands, people familiar with the matter told Reuters. The Commission's competition authorities had set a deadline of 30 November to take a decision on the deal, which would reduce the Dutch market from four to three mobile network operators.
The European Commission opened an in-depth investigation into the merger five months ago and in September issued a statement of objections outlining its concerns that the takeover would hurt competition in the Dutch market and lead to price increases for consumers. In August, T-Mobile Netherlands presented a series of promises aimed at alleviating the concerns, such as maintaining Tele2's cheaper unlimited data offer and accelerating the roll-out of 5G.
Stronger number 3
Deutsche Telekom has argued that the combined company would have only a 25 percent market share, well behind market leader KPN and still less than number-two VodafoneZiggo. Furthermore, the merger would give it a stronger position in the growing fixed-mobile market, to help compete with the joint dominance of the two market leaders.
According to the latest research from Telecompaper, T-Mobile and Tele2 Netherlands had a combined share of 29.4 percent of customers on the Dutch mobile market in Q3, ahead of Vodafone with 24.5 percent. Excluding wholesale Sims, the combined group has moved into second place in the past year, with a pro forma share of 25.4 percent of retail customers, while Vodafone dropped to third place with 23.9 percent of retail customers.
Under the deal, Tele2 will receive EUR 190 million in cash and a 25 percent stake in the enlarged T-Mobile Netherlands, according to the terms of the deal announced last December. The companies aim to complete the transaction by the end of 2018.
Deutsche Telekom and the European Commission declined to comment on the report.
