Spain’s Masmovil abandoned plans to acquire a 50.1 per cent stake in MVNO Youmobile, after failing to reach a final agreement on the deal.
Masmovil, which operates as an MVNO and integrated services provider in Spain, announced a preliminary agreement in September to acquire the stake in Youmobile, an MVNO focused on the Chinese community in the country.
The proposed initial deal also included options to allow for a complete takeover by Masmovil of Youmobile within five years.
In a statement, Masmovil said it was now completely withdrawing from the acquisition following a period of due diligence, which led to a “lack of agreement between the parties on issues relevant to the economic transaction”.
Ambitious Masmovil has made no secret of its desire to become Spain’s fourth national integrated operator, a market led by larger players Telefonica, Vodafone and Orange.
Last year, the company bolstered its claims after moving to acquire certain broadband assets from fixed operator Jazztel, which is now controlled by Orange.
The deal, which will allow the MVNO to offer fibre services to around 720,000 households in Spain’s largest cities, was approved by the European Commission in October.