Hong Kong-based CK Hutchison is set to gain the European Commission's approval for its EUR 2.45 billion deal to buy out the remaining 50 percent stake in Italian operator Wind Tre it does not already own, according to an unnamed source cited by Reuters. The merger of CK Hutchison's 3 Italia and Veon's Wind was announced in August 2016 and took effect from January 2017, marking one of Italy's largest corporate deals in years. That deal was already subject to divestments that helped the entry of a fourth operator, Iliad, on the Italian mobile market. The concessions offered by CK Hutchison are “the same as those in 2016”, according to the source, and include a pledge to help Iliad’s business in Italy.
CK Hutchison previously said it expects the takeover to close in the third quarter of 2018, delivering strong recurring earnings over the coming years ahead. In 2017, its existing 50 percent stake in Wind Tre business contributed over EUR 1 billion attributable EBITDA and over EUR 800 million attributable EBIT for the group, it said.
On its website, the Commission has set a provisional deadline of 31 August for its decision.
