Tele2 and Deutsche Telekom to merge Dutch units

15 Dec 2017

Sweden’s Tele2 Group and Deutsche Telekom (DT) have agreed to combine their respective operations in the Netherlands, it has been announced, with the former to hold a 25% share in the combined operator and receive a cash payment of EUR190 million (USD224 million) once the deal closes.

Following the proposed merger of Tele2 Netherlands and T-Mobile NL the parent companies expect the enlarged entity to have around five million mobile pre- and post-paid subscribers and generate annual revenues of around EUR2 billion, while synergies are estimated at a net present value (NPV) of more than EUR1 billion. The combined company is expected to be capitalised with an intercompany loan receivable by DT of approximately EUR1.1 billion, while the German firm will reportedly retain its Dutch tower assets in a separate entity.

In announcing the deal, Tele2 Group said that with the deal subject to regulatory approval by the relevant competition authorities, it expects the transaction to close in the second half of 2018. Further information regarding the regulatory timeline and process will be forthcoming ‘when it is available’. Notably, as part of the agreement between Tele2 Group and DT, it has been confirmed that there is a break fee amounting to EUR25 million that Tele2 will receive should the deal not be given the nod by the relevant authorities.

Commenting on the development, Allison Kirkby, president and CEO of Tele2 Group, said: ‘This is a fantastic opportunity to speed up development of the Dutch telco market and to spur effective competition to the benefit of the Dutch population. This enlarged company builds on the great momentum we have built since relaunching Tele2 in November 2015 and on the network sharing that we have had with T-Mobile since 2013.’

Netherlands,Deutsche Telekom (DT), T-Mobile Netherlands, Tele2, Tele2 NL,

Subscribe



Feedback

Have feedback, corrections, or story ideas? Send them to editors@commsupdate.com.

Browse Past Issues

Filter

Filter CommsUpdate by the following categories or use the search.

Search

Visit our help page information on performing advanced searches, including how to restrict the results by country or company.

Advertise

CommsUpdate is an outstanding advertising venue for companies seeking to reach:

  • International carriers
  • Wholesale service providers
  • Equipment and software vendors
  • Telecom investors
  • Regulators

Learn more about advertising on CommsUpdate.

Share