EC clears Telefonica, Pontegadea for Telxius deal - Mobile World Live

EC clears Telefonica, Pontegadea for Telxius deal

21 APR 2022

The European Commission (EC) approved Telefonica and partner Pontegadea to buy investment company KKR’s stake in infrastructure business Telxius for €215.7 million, after concluding there were no competition issues with the deal.

Telefonica and Pontegadea already hold sizable stakes in Telxius and, on completing the purchase of KKR’s 40 per cent interest, will own 70 per cent and 30 per cent of the business respectively.

Clearing the deal, the EC concluded there were no relevant overlaps with the parties’ other interests. It also highlighted Pontegadea’s assets were mostly in real estate and the textile sector.

Telxius’ business is focused on submarine cables and related communications infrastructure, having sold its tower arm to American Tower in 2021.

It currently holds a network of submarine cables covering 94,000km.

On first announcing its intent to buy part of KKR’s stake, Telefonica highlighted the importance of cable networks during the pandemic, adding they would be “equally decisive for the development of the metaverse, Web 3 and the new digital era.”



Chris Donkin

Chris joined the Mobile World Live team in November 2016 having previously worked at a number of UK media outlets including Trinity Mirror, The Press Association and UK telecoms publication Mobile News. After spending 10 years in journalism, he moved...

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