Vodafone gets EU antitrust approval for Kabel Deutschland dealFriday 20 September 2013 15.54
Vodafone’s €7.7 billion purchase of Germany’s Kabel Deutschland has won European Union antitrust approval, allowing the carrier to expand its internet and television customer-base.
The deal does not raise competition concerns because “the activities of the merging parties were mainly complementary,” the European Commission said in an emailed statement.
While Kabel Deutschland primarily offers cable TV, fixed line telephony and Internet access services, Vodafone’s main business consists of mobile telephony services, the Brussels-based commission said.
The transaction gives Vodafone access to 8.5 million households in Germany, Europe’s largest telecommunications market, and bolster its capacity to sell combined wireless, fixed-line Internet and television services.
It would also intensify competition with Deutsche Telekom AG, the country’s former phone monopoly, on whose network Vodafone has so far relied for wireline services.
Germany is Vodafone’s biggest market, accounting for about 18% of annual sales, according to data compiled by Bloomberg.