Swiss competition commission Weko announced that it has approved the takeover of UPC Switzerland by Sunrise. Weko conducted an in-depth examination of the proposed merger and concluded that it does not build or reinforce a dominant position in any of the markets analysed.
Sunrise would become the second largest telecommunications company in Switzerland after the acquisition of UPC and its cable network infrastructure. Like Swisscom, Sunrise will be able to offer landline, broadband internet and mobile services as well as digital television on its own infrastructure in Switzerland.
Weko said it examined the merger plan also in light of possible joint dominance in the market with Swisscom, but noted that this is not the case because a coordination between the two companies seems unlikely. Moreover, it expects the merger of UPC and Sunrise should improve competition on the market, after Sunrise said it plans to offer high-quality, affordable products in order to grow its market share.
The takeover of UPC from Liberty Global was first announced in February for CHF 6.3 billion. Weko opened an in-depth investigation of the deal in June due to concerns of dominance in certain market segments after the merger.
Sunrise must still secure approval from shareholders for financing the transaction before the deal is completed. It plans a shareholders meeting on 23 October and aims to close the merger by the end of November.
