uan Fernandez Gonzalez | 26-08-2013
Putting an end to speculation about Amrica Mvil (AMX) possibly preventing the KPN-Telefnica merger in German telecoms market, the Spanish and Mexican companies have come to an agreement through which AMX will support the sale of E-Plus to Telefnica, according to Europa Press and EFE.
If the German competition authority doesn't object, Telefnica Deutschland will become the third largest operator in the country.
According to Telefnica, communicating with Spain's securities market commission, KPN's shareholders are free to support the merger in the meeting set for 2 October. KPN's board of directors had recommended supporting the merger, but Amrica Mvil's takeover offer to buy KPN's parent company had become relevant to negotiations.
Telefnica will purchase 100% of E-Plus for 3,700 million, and between 20.6% and 24.9% of Telefnica Deutschland (higher than the figure initially announced). The resultant company will have a customer base of 43 million in Germany, a market share of 38% and an income of 8,600 million.
According to Csar Alierta's company, the combined operation is estimated to be worth between 5,000 and 5,500 million, which will make Telefnica Europe's second largest operator.