EU assessing deal by UAE's e& for PPF over alleged subsidies

EU Investigates UAE Telecom's Bid for Czech Assets:

• The European Commission is investigating the bid by UAE telecoms group e& to acquire parts of Czech telecoms company PPF's assets.
• Concerns are raised about potential distortive foreign subsidies benefiting e& in the acquisition.

First Examination Under Foreign Subsidies Regulation:

• This acquisition probe marks the first under the EU's Foreign Subsidies Regulation, allowing scrutiny of unfair state support to foreign companies.
• Preliminary findings suggest that e& may have received foreign subsidies distorting the EU internal market.

Alleged Subsidies and Impact:

• The alleged subsidies include an unlimited guarantee from the UAE and a loan from UAE-controlled banks facilitating the transaction.
• These subsidies could enhance e&'s ability to complete the acquisition and improve the merged entity's competitive position in the EU.

Company Response and Cooperation:

• e& stated it is cooperating with the European Commission during the review process.
• The company is engaged in discussions with the Commission regarding its proposed majority stake acquisition in PPF Telecom Group.

Decision Deadline and Potential Outcomes:

• The European Commission has set an October 15 deadline for its decision on the deal.
• Possible outcomes include clearing the deal with concessions or blocking it based on the investigation results.