EU approves acquisition of Tele2 Netherlands by TMobile NL

The European Commission approved the acquisition of Tele2 Netherlands by T-Mobile Netherlands without any conditions.

The combined company will have pro-forma revenues in excess of EUR 2.0 billion (last twelve month as of Q3/2017) and around 4.3 million mobile postpaid subscribers and expects to generate annual run-rate synergies of around EUR 150 million p.a. within three years from closing.

Upon closing of the transaction, Tele2 will receive a stake of 25 percent in the enlarged company and a cash payment of EUR 190 million. Deutsche Telekom will own 75 percent of the company and a EUR 1.1 billion intercompany loan receivable. The deal is now expected to close in early 2019.

Søren Abildgaard, CEO of T-Mobile NL: "I am very pleased with the decision of the European Commission because it is the best outcome for Dutch consumers and businesses. We are committed to continue to disrupt the Dutch telecom market and this transaction will allow us to step up the challenge for KPN and VodafoneZiggo. Moreover, we can now start to implement the promises we made including an accelerated 5G launch, high speed internet in rural areas as well as contract freedom for new and existing customers with a combined contract of fixed and mobile services.“