EU Clears T-Mobile & Orange Merger (DT, FTE, HUWHY)
The EU has cleared the planned merger of T-Mobile (NYSE: DT) and Orange (NYSE: FT) in the UK. The merger will create Britain’s largest mobile phone operator. The European Commission has asked the involved parties to amend "an existing network sharing agreement with Hutchison 3G UK (3UK), to ensure that there remains sufficient competitors in the market." The Commission had expressed its concerns about the viability of 3UK. 3 UK is owned by Hutchison Whampoa (OTC:HUWHY)
The merging companies will also have to divest 25% of their combined share in the 1800 MHz band. The commission also said that the merged company would dominate the 1800 MHz spectrum. The resulting entity would have 28.4 million clients. Its market share is likely to be around 37%.
