The merger of the number three and four players on the German mobile market will allow the companies to approach the market share of leaders Telekom Deutschland and Vodafone. According to research by Telecompaper, E-Plus and O2 had 38.5 percent of customers at the end of June 2013, compared to 33 percent for Telekom and 31.5 percent for Vodafone. In terms of service revenues, the combined group would still be in third place, just behind Telekom and Vodafone.
Completion of the sale still depends on regulatory clearance. KPN CEO Eelco Blok said at the EGM that this is expected by mid-2014. KPN secured the approval of a majority of shareholders, including notably its largest shareholder America Movil, after agreeing to a higher price for the deal with Telefonica, from an initial value of EUR 8.1 billion. Telefonica will hold 62.1 percent in the Germany company after the merger, with the remainder listed on the stock market.
