The planned large merger between Telenor and TeliaSonera in Denmark is shelved. The EUROPEAN UNION Commission praised.
The announced merger between Telenor and TeliaSonera’s Danish network will not become a reality. It informs the companies in the joint press release.
In december last year, the companies announced that activities in Denmark would be added together in order to strengthen the companies investment opportunities in an otherwise cramped Danish telecommunications market.
“From the beginning we have been clear on the need to increase investment levels in Denmark. In our perspective, would the establishment of a market player with size and capacity to compete and invest ensure both private and business customers significant better quality, speed and coverage, “explains, TeliaSonera’s Executive Vice President, Rober Andersson.
The new company would have created a major player with 3.5 million telecommunications customers-a size that could rival the with TDC’s leader position in the Danish telecommunications market.
Kommissionsag range legs
The shrine has its roots in demands from the EU Commission that the merged company could not meet.
In June this year, the Commission’s competition Office, began with Danish Margrethe Vestager, in the lead, a case that should shed light on whether the merger would reduce competition in the Danish telecommunications market.
Today’s announcement points therefore to Telia and Telenor will no longer believe in could win the case, despite the concessions as sell-offs of budget carrier Bibob and up to 40% of the corporate network.
“In order to carry out both companies ‘ interest, it was necessary to act now. Telenor and Telia will continue to compete and deliver products and services in the Danish market through our original respective fully operative companies, “says Kjell-Morten Johnsen, Executive Vice President and head of Europe in Telenor.
TeliaSonera and Telenor goes, therefore, each to his own, but will continue to evaluate strategic opportunities in the Danish market.