CNMC approves the merger between MásMóvil and Euskaltel |
By Colin Mann
June 17, 2021
The Spanish competition regulator, Comisión Nacional de los Mercados y la Competencia (CNMC), has given its first phase approval to the merger between the telecommunications operators and Euskaltel.
The € 2 billion transaction consists of the acquisition by MásMóvil Ibercom SAU of exclusive control of Euskatel, SA via a public offer to purchase shares representing the entire capital of Euskaltel. The operation is subject to the approval of the competent authorities.
MásMóvil is the fourth largest telecommunications company in Spain. It mainly provides fixed, mobile and broadband Internet services to residential or business customers in Spain through its main brands: Yoigo, MásMóvil, Pepephone, Llamaya, Lebara, Ocean and Lycamobile.
Euskaltel is Spain’s fifth largest telecommunications company. It has a strong presence in Asturias, Galicia and the Basque Country where it has deployed its own fixed cable network with wide coverage and in which it is developing its activities through its Telecable, R Cable and Euskaltel brands. It has recently extended its activities to the rest of Spain through the Virgin Telco brand.
The CNMC considers that the transaction does not significantly modify the competitive situation. Nationally, MásMóvil strengthens its position as fourth operator in the retail markets; as the presence of Euskaltel is still limited, the addition of quotas will therefore not be very important. In the case of Asturias, Galicia and the Basque Country, where Euskaltel has a significant market share in the field of retail sales and a strategy that has differential aspects compared to MásMóvil, there are other important operators who will continue to exert competitive pressure.
As far as wholesale markets are concerned, while the resulting entity will strengthen its position as the main applicant for wholesale services, this should not substantially change the conditions of competition given the existence of vertically integrated operators with significant shares in the market. retail markets.
The market test carried out by the CNMC with several operators in the sector showed that the operation does not pose significant competition problems and is valued by these operators in a positive way as part of the consolidation process which has begun in the area.
In view of the above, the CNMC authorized the concentration in a first phase without commitments.