KPN has permission to sell German branch

The European Commission, KPN has given the green light for its German branch E-Plus to sell to competitor Tel lwa fonica. This is the deal of more than eight billion euros after a year, finally.

The European Commission gives green light under the condition that the origin Spanish provider in Germany at least almost one-third of its capacity to offer virtual providers in order to promote competition. In addition, it will frequentieruimte available if a company has a provider with a private network wants to be.

The conditions were according to the Commission, because, due to the acquisition of the number of providers with an own network in Germany reduced from four to three. In addition to Teléfonica are Vodafone and the originally German T-Mobile active on the German market.

After the sale wants to KPN on its core geographies of focus, that where the Netherlands and Belgium. In Belgium, KPN subsidiary Base for a long time to purchase, but some time ago it was decided KPN to Base of the market. There were parties with an interest, but the company took the offered amounts are too low.

For E-Plus, KPN from the Spanish provider, in total, more than 8.5 billion euro. Of that amount, 3.5 billion in shares, KPN will receive an interest of more than 20 percent in the Spanish telecommunications company and five billion in cash. The provider will use that amount to support the strategy and to pay dividends to shareholders.

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