The European Commission (EC) approved a proposed acquisition of Com Hem by Tele2, a deal struck in January as part of the operator’s strategy to increase the services it supplies in its home market.
In a statement the commission said “the transaction would raise no competition concerns as the companies’ activities and assets are largely complementary.” It added the merged entity “would continue to face significant competition from other players such as Telia and Telenor, both active on all retail telecommunications markets in Sweden, as well as Tre, active on the retail mobile telecommunications market in Sweden.”
The EC added the merged entity would not have the market power to shut out or marginalise its fixed or mobile competitors by bundling fixed and mobile products.
When the deal was first announced it was reported integration of the fixed, broadband and cable company would cost Tele2 around SEK600 million ($65.7 million), with most fees incurred in the first three years after completion.
Following the tie-up, the combined company is estimated to achieve annual savings of SEK900 million.Subscribe to our daily newsletter