Hutchison’s Three Italia will combine with VimpelCom’s Wind Telecom in a €21.8 billion merger
Source: South China Morning Post
The European Commission has allowed CK Hutchison Holdings and VimpelCom to form a joint venture that would create Italy’s largest mobile telephone network.
The approval follows the commission’s rejection four months ago of Hutchison proposed takeover of British mobile network operator O2.
“Today’s decision ensures that the Italian mobile sector remains competitive, so that consumers can continue to enjoy innovative mobile services at fair prices and on high quality networks,” Margrethe Vestager, the European Commissioner for Competition, said in a statement on Thursday. “We can approve the deal because Hutchison and VimpelCom have offered a strong remedy that enables a new mobile network operator, Iliad, to enter the Italian market.”
Hutchison, parent of mobile operator Three Italia, agreed to combine its operation with VimpelCom’s Wind Telecom in a €21.8 billion (HK$188.47 billion) merger in August last year, in what was to be Italy’s largest deal since 2007.