Spain’s competition authority approved a proposed €2 billion acquisition of regional fixed player and MVNO Euskaltel by Masmovil without conditions after concluding it would not pose significant problems.
CNMC noted although Euskaltel had a significant presence in the Asturias, Galicia and the Basque Country regions, its national presence was limited, meaning combining with the MNO would not have a significant impact on competition.
It added in the areas where Euskaltel had a strong market share, it had a different strategy to Masmovil, other “significant operators” present and able to continue to exert pressure.
The regulator also noted third parties it quizzed did not raise significant issues and broadly viewed sector consolidation as a positive. As a result it cleared the deal without conditions.
Masmovil announced its bid [1] for the company in March, with the offer subject to approval by Euskaltel shareholders and the final nod from stock market authorities in Spain. It is making the move through subsidiary Kaixo Telecom.
In its statement announcing the proposed acquisition, Masmovil said the deal would consolidate its position nationally, noting the larger business would be in a better position to accelerate investment in 5G and fibre.
[1] https://www.mobileworldlive.com/featured-content/home-banner/masmovil-bids-e2b-for-regional-rival-euskaltel
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