SoftBank, KDDI fight against NTT Docomo's takeover by government-backed parent

News Wireless Japan 12 NOV 2020
SoftBank, KDDI fight against NTT Docomo's takeover by government-backed parent

Japanese operators Softbank and KDDI have appealed a planned takeover of the country’s biggest mobile operator NTT Docomo by its government-backed parent NTT Corp, The Japan Times reports. The transaction price tops JPY 4.2 trillion (approximately USD 40 billion). The appeal was submitted to Japan’s Ministry of Communications.

NTT Corp announced in September this year its plan to buy out the remaining shares in NTT Docomo. NTT currently holds a 66 percent stake in NTT Docomo, and its CEO claims the proposed transaction would enhance “competitiveness and growth”.

On 28 October, domestic operators SoftBank and KDDI sent a joint letter to the country’s communications minister protesting against the proposed takeover. SoftBank and KDDI claims making Docomo a wholly owned NTT Corp company would “create a powerful force that dominates the market”. “It will prevent fair competition in the telecoms market and user benefit created through competition could be lost”, SoftBank and KDDI also said. 

In their joint letter, the two operators urge the minister “to set up measures to protect an environment of fair competition and instruct and ensure compliance and implementation”.

Categories:

Mobile

Companies:

NTT Docomo,  NTT,  KDDI,  Softbank

Countries:

Japan

Tags:

Wholesale, Legislation - Lawsuits, M&A buyouts & divestments

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