Vodafone Spain and Masmovil exploring merger without acquisition - report

News General Spain 24 NOV 2020
Vodafone Spain and Masmovil exploring merger without acquisition - report
After denying press reports regarding imminent takeovers, Vodafone and Spain’s Masmovil are now exploring the possibility of merging their respective businesses without a sale or acquisition, according to unnamed sources cited by business daily El Economista. Such a move would require setting up a new entity in which Vodafone would hold a majority stake of between 60 and 80 percent, said the report, adding that the UK multinational has previously managed to merge its local businesses in the Netherlands, Australia and New Zealand with rival fixed line operators without a cash disbursement.

As it did in September, Masmovil denied the reports, stressing that “neither Masmovil nor its shareholders are negotiating absolutely anything with Vodafone”, while outgoing Vodafone Spain CEO Antonio Coimbra avoided commenting on any negotiations, saying it was a matter corresponding to the Vodafone Group. Last month, Masmovil CEO Meinrad Spenger moved to dampen earlier rumours regarding the possible purchase of Masmovil by Vodafone to create the country’s second largest operator as “more bluff than reality”, before adding that "consolidation is necessary and beneficial” in the Spanish market.

According to the sources cited in the latest report, the future shareholding structure of any merged company would first need to be ironed out between Vodafone and Masmovil’s new owner, the Lorca Telecom consortium of buyout funds KKR, Cinven and Providence. "It all comes down to a game of valuations and predicted value creation projections," they said.


 

Categories:

General

Companies:

Vodafone Group,  Masmovil,  Vodafone Spain

Countries:

Spain

Tags:

Shareholders & subsidiaries, Corporate strategy, M&A buyouts & divestments

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