KKR wins EU nod for $24 billion Telecom Italia fixed-line network deal
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 30 2024
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Source: Yahoo Finance
- KKR's Acquisition Approval: U.S. investment firm KKR received unconditional EU antitrust approval for its 22-billion-euro acquisition of Telecom Italia's fixed-line network.
- Significance of the Deal: This marks the first instance of a major European telecom operator divesting its landline grid, potentially setting a precedent for others to do the same.
- EU Commission's Findings: The European Commission stated that the acquisition would not significantly reduce competition in the market for wholesale broadband access services in Italy.
- Addressing Rivals' Concerns: KKR has addressed concerns of Telecom Italia's rivals by offering to maintain existing contracts and prices after the acquisition through an informal remedy.
- Network Details and Sale Purpose: TIM's landline network covers 89% of Italian households, with the sale being part of a government-backed plan to reduce Telecom Italia's debt.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
