The European Commission (EC) has approved the sale of Telecom Italia's fixed network subsidiary, NetCo, to a company controlled by the US investment firm, KKR. The EC concluded that the transaction posed no competition concerns.
Read More: Telecom Italia Agrees Network Sale to KKR in EUR 22 Billion Deal
In the findings from its investigation into the anticipated impact on the country's wholesale broadband market, the EC stated its belief that the level of competition would not be significantly diminished.
The authority highlighted that the “market power of NetCo will not materially increase” due to existing long-term agreements with other providers. It also pointed out that the master services agreement (MSA) between the buyer and seller, concerning the post-transaction relationship between Telecom Italia and NetCo, did not fall within the scope of its merger regulation.
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The EC's unconditional approval marks the latest progress in the sale to Optics BidCo, a deal that has encountered strong opposition from some of Telecom Italia's shareholders but has received robust support from the company's current management team.
Read More: Italian Government Approves TIM's Network Sale to KKR
In a statement, Telecom Italia noted that this approval allows the transaction to proceed as planned, with the completion date previously set for mid-2024.
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