Bulgaria’s Commission on Protection of Competition (CPC) has approved SpectrumNet’s proposed acquisition of rival Orbitel in a deal worth EUR5 million (USD7.17 million). Both companies compete in the fixed line, internet, data transfer and voice-over-internet-protocol (VoIP) markets. The CPC ruled that the merger will lead to better quality of service and lower costs from the synergies existing between the two companies. The two telecoms, both set up in 1997 to challenge the incumbent Bulgarian Telecommunications Company (BTC, now operating under the Vivacom brand) plan to merge operations and expect to report EUR20 million in revenue and a gross profit of EUR5 million this year.
Orbitel’s previous owner Magyar Telekom, itself a unit of Deutsche Telekom, will take a hit on the sale of Orbitel, having bought the company for EUR8 million.