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.”Subscribe to our daily newsletter Back