UK-based Vodafone Group is reportedly set to gain unconditional approval from the European Union (EU) for its proposed acquisition of Spanish cableco Grupo Corporativo ONO, Reuters reports, citing people familiar with the matter. The unnamed sources were said to have confirmed that the European Commission (EC) has not demanded any concessions from Vodafone in return for giving the deal the green light, with one noting: ‘There are no issues; the deal will be cleared by the European Commission without conditions.’
In March 2014 CommsUpdate reported that Vodafone Group had agreed to acquire ONO for a total consideration equivalent to EUR7.2 billion (USD9.9 billion) on a debt and cash free basis. In announcing the deal, the British company said it expected the transaction to ‘accelerate [its] unified communications strategy in a key, highly converged European market, providing a significant time-to-market advantage and network reach that is complementary to Vodafone Spain’s ongoing fibre-to-the-home (FTTH) build programme’. Further, Vodafone Group said it expected to achieve cost and CAPEX synergies with a run-rate of approximately EUR240 million before integration costs by the fourth full year after the deal is completed, equivalent to a net present value of approximately EUR2.0 billion after integration costs.