Telefónica closes E-Plus acquisition, becomes leading German operator
Juan Fernandez Gonzalez
| 02 October 2014
After obtaining approval from the European Commission and completing the necessary capital increase, Telefónica has closed the acquisition of E-Plus, KPN's German subsidiary.

The move has lead to Telefónica Deutschland becoming the main operator in the German market, with around 47 mobile and fixed offers and a combined revenue of approximately €8 billion.

Thanks also to Telefónica's leading position in the Spanish market, the group is now the second largest operator in Europe in terms of mobile access and total revenue, and is now in a position to improve its growth and cash generation ratios.

As was previously announced, Telefónica maintains a stake of 62.1% in Telefónica Deutschland, which now includes 100% of E-Plus; KPN holds a 20.5%; and the rest is free float.

Combining the strengths of Telefónica Deutschland and E- Plus, the new Telefónica Deutschland is also gaining access to the mobile video and OTT sectors in Germany by gaining the E-Plus video platform for mobile devices.

The transaction, concluded today (2 October), implies considerable value creation with synergies estimated at over €5 billion, deriving primarily from the areas of distribution, customer service and mobile network integration.

This operation follows a decisive period for Telefónica, marked by a series of initiatives aiming to bring about a profound strategic transformation of the company on its path to become the leading digital telco.

Due to the acquisition of E-Plus, the recent purchase of GVT and the commercial revolution which has transformed the Spanish market, Telefónica has gained a leading position in three of its most important markets: Germany, Brazil and Spain.