uan Fernandez Gonzalez | 26-08-2013
Putting an end to speculation about América Móvil (AMX) possibly preventing the KPN-Telefónica 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 Telefónica, according to Europa Press and EFE.
If the German competition authority doesn't object, Telefónica Deutschland will become the third largest operator in the country.
According to Telefónica, 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 América Móvil's takeover offer to buy KPN's parent company had become relevant to negotiations.
Telefónica will purchase 100% of E-Plus for €3,700 million, and between 20.6% and 24.9% of Telefónica 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 César Alierta's company, the combined operation is estimated to be worth between €5,000 and €5,500 million, which will make Telefónica Europe's second largest operator.