Telecom: Telefónica buys German E-Plus for 8.6 billion euros

by bold-lichterman

The European Commission has just authorized the takeover of the German operator E-Plus, a subsidiary of KPN, by Telefónica Deutschland for 8.6 billion euros. The new structure should form the country’s leading telecom operator, ahead of Vodafone and T-Mobile.

“The commitments made by Telefónica ensure that the takeover of E-Plus will not harm competition in the German telecommunications market. Consumers will continue to enjoy the benefits of a competitive market, ”explains Joaquín Almunia, Commission Vice-President responsible for competition.

But beyond the German market, the Commission has above all sent a clear message in favor of concentration in the telecoms sector, since this operation reduces the number of operators with a network from four to three (i.e. say except MVNO, virtual operators, editor’s note) across the Rhine.

In France, the German file was very followed at a time when Bouygues Telecom seeks to make alliance, and where Arnaud Montebourg had encouraged him in this direction. Yesterday, Orange announced that it has “ explored the possibilities of participating in an operation to consolidate the French telecoms market, and considers that the conditions that the group had set are not met today to follow up ”.

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