Denmark’s struggling incumbent TDC has admitted it would consider a merger offer if it comes along, according to a Bloomberg interview with CFO Pernille Erenbjerg.
“I don’t foresee the biggest companies like Telia and Telenor disappearing over five years, but others might,” said Erenbjerg.
“TDC’s role is different than these two bigger players. TDC has a size that makes it possible for big players to consider it.”
TDC is Denmark’s largest mobile operator but is under financial pressure. It forecast that harsher regulation on roaming and fixed broadband wholesale prices will hurt revenue and profit from next year.
“Consolidation is a big theme in Europe for our industry,”said Erenbjerg. “Looking at a five-year horizon, I would say that consolidation will also take place in the Nordic region, leaving fewer players.”
TDC completed the sale of its Finnish operations to local operator DNA in Q2 but further piecemeal sell-offs are not on the agenda because it considers its remaining assets as core.
“We’re not actively up for sale, although as a listed company, you’re theoretically always for sale,” Erenbjerg said. “But we would obviously listen if there were an approach.”
However the company may grab some smaller acquisitions itself, although only in the range of DKK100 million per deal ($18 million), said the CFO. Its target market for such deals are Denmark, Norway and Sweden.