Today the European Commission has approved the acquisition of Tele2 Netherlands by T-Mobile Netherlands without any conditions. The combined company will be in a better position to offer integrated packages of fixed and mobile telecommunication services to customers and step up the challenge for the dominant players in the Dutch market, KPN and VodafoneZiggo.
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.“
Thorsten Langheim, designated member of Deutsche Telekom’s Board of Management responsible for USA and Group Development, commented: “I am pleased that the EC has acknowledged the specifics of the Dutch merger and therefore approved this transaction unconditionally. Following clearance of our UPC acquisition in Austria earlier this year, this is another important milestone in the strategic development of DT’s European Portfolio and more importantly our turnaround plan for T-Mobile NL. The enlarged T-Mobile is now in a strategically improved position to attack the two dominant players in the Dutch telco market and the increased scale improves our investment capabilities to sustain our network leadership and to build out next generation 5G and fiber networks.”
Closing of the transaction is scheduled for beginning of 2019. From this point in time onwards the financial results of Tele2 NL will be fully included in Deutsche Telekom Group’s consolidated financial statements.
The enlarged 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. These synergies allow for disruptive customer propositions and sustainable investment to maintain network leadership.
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.
This media information contains forward-looking statements that reflect the current views of Deutsche Telekom management with respect to future events. They are generally identified by the words "expect," "anticipate," "believe," "intend," "estimate," "aim," "goal," "plan," "will," "seek," "outlook" or similar expressions and include generally any information that relates to expectations or targets for revenue, adjusted EBITDA, EBITDA, or other performance measures. Forward-looking statements are based on current plans, estimates, and projections. They should therefore be considered with caution. Such statements are subject to risks and uncertainties, most of which are difficult to predict and are generally beyond Deutsche Telekom's control. If these risks and uncertainties materialize, or if the assumptions underlying any of these statements prove incorrect, the actual results may be materially different from those expressed or implied by such statements. Deutsche Telekom can offer no assurance that its expectations or targets will be met. Without prejudice to existing obligations under capital market law, Deutsche Telekom does not assume any obligation to update forward-looking statements to account for new information or future events or anything else.
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T-Mobile NL to join forces with Tele2 Netherlands
T-Mobile NL and Tele2 Netherlands to join forces, forming a customer champion and attacking the market leading duopoly.