DGAP-News: Telefónica Deutschland Holding AG: Merger clearance: Important milestone for Telefónica Deutschland

DGAP-News: Telefónica Deutschland Holding AG / Key word(s): Mergers & Acquisitions Telefónica Deutschland Holding AG: Merger clearance: Important milestone for Telefónica Deutschland 02.07.2014 / 13:00
2nd July, 2014 Merger clearance: Important milestone for Telefónica Deutschland - Building a leading digital telco to compete - Focus on mobile data with great customer experience - Expected synergies of more than 5 billion Euros MUNICH. Telefónica Deutschland has received the EU Commission's conditional clearance to acquire the E-Plus Group from the Dutch telecommunication corporation KPN. After the fulfilment of the conditions Telefónica Deutschland will be able to go ahead to form a leading digital telecommunication provider in Germany with a strong focus on the mobile data business. "We have now reached the most important milestone on our way to close the transaction", says Markus Haas, CSO Telefónica Deutschland Holding AG. "We welcome the decision by the European Commission. It underpins consolidation opportunities in Europe, fostering investments and mobile data business." "The new company will gain significant scale and efficiency benefits which will enable us to challenge the market with innovative products and services with great customer experience ", says Rachel Empey, CFO Telefónica Deutschland Holding AG. "Combining the strengths of both companies we will be able to offer a broader, deeper and faster mobile data experience, providing significant benefits for our customers." In the course of the merger clearance process, Telefónica Deutschland has agreed a set of remedies which fully address the EU commission's competition concerns. In this regard, Telefónica has committed to sell upfront 20 percent of its mobile network capacity via Bitstream Access to an MVNO and give the opportunity to acquire up to 10 percent additional network capacity. Bitstream Access is a product where the MNO provides network capacity in the form of data throughput and data volume. This enables an MVNO to offer its own mobile services to customers. Telefónica Deutschland has already signed a corresponding contract with Drillisch. This will become effective when the European Commission confirms that the agreement with Drillisch complies with the conditions and obligations attached to the approval of the transaction. Furthermore, to enable a potential entry into the German market, Telefónica will make available to an interested party a package of 2.1 and 2.6. GHz frequencies, mobile sites, national roaming and a passive site sharing. In addition, existing contracts with wholesale partners will be extended until 2025 and the transition to a different guest network operator will be facilitated. Telefónica Deutschland will continue to focus on its mobile data strategy and confirms the expected synergies from the transaction of more than 5 billion Euro (net present value). The company remains confident in closing the acquisition of E-plus during the 3rd quarter of 2014. Further information: Telefónica Deutschland Investor Relations Georg-Brauchle-Ring 23-25 D-80992 München t +49 (0)89 2442-1010 f +49 (0)89 2442-2000 e ir-deutschland@telefonica.com End of Corporate News
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Language: English Company: Telefónica Deutschland Holding AG Georg-Brauchle-Ring 23-25 80992 München Germany Phone: +49 (0)89 24 42 0 Internet: www.telefonica.de ISIN: DE000A1J5RX9 WKN: A1J5RX Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart TecDAX End of News DGAP News-Service
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