euro news_news 12/07/2013 17:21 Page 1
odafone says the acquisition will create a leading integrated player in its largest European market and is consistent with its stated market-by-market convergence strategy of wholesale, organic fibre deployment or M&A. According the telco, Kabel Deutschland provides Vodafone with an attractive platform for TV and fixed broadband in Germany and creates a leading integrated
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increasingly access TV, fixed and mobile broadband services from multiple devices in the home and workplace and on the move. The combination of Vodafone Germany and Kabel Deutschland will greatly enhance our offerings in response to those needs and is consistent with Vodafone’s broader strategy of providing unified communications services.” He suggested that the transaction would lead to the creation of an operator with significant competitive scale,
Vodafone buys Kabel Deutschland
operator with pro forma revenues of approximately €11.5 billion. “Leveraging Kabel Deutschland’s high speed broadband and TV capabilities will provide Vodafone with the ability to offer premium unified communications services to consumers and businesses in Germany,” says Vodafone. The companies say Vodafone’s and Kabel Deutschland’s network infrastructures are highly complementary; Vodafone intends to migrate its existing fixed line DSL customer base to Kabel Deutschland’s cable network where possible, generating savings from closing down DSL central offices, reduced maintenance costs and removing the need to pay unbundled local loop and bitstream fees. Outside Kabel Deutschland’s footprint, Vodafone will continue to offer fixed broadband access to consumer and business customers via DSL or via its recently announced VDSL bitstream agreement with Deutsche Telekom. Vodafone’s mobile business will benefit from Kabel Deutschland’s network, which will provide transmission capacity for
Vodafone has made an agreed offer for German cable MSO Kabel Deutschland in a €7.7 billion deal.
Vodafone’s base stations at considerably lower cost than prevailing market rates for leased capacity. There is also scope for savings by combining overlapping regional and national backbones. Vodafone also suggests that it has a significant opportunity to use its leading brand, extensive distribution network and scale to accelerate the growth in Kabel Deutschland’s business and cross-sell Kabel Deutschland’s high quality fixed broadband, fixed telephony and TV offerings to Vodafone’s existing customers. Vodafone Group Chief Executive Vittorio Colao said: “German consumer and business demand for fast broadband and data services continues to grow substantially as customers
attractive operating and capital investment efficiencies and a combined management team with expertise across all communications segments and technologies. Kabel Deutschland CEO Dr. Adrian von Hammerstein said: “Kabel Deutschland has evolved into one of the most dynamic players in the sector. Its high-performance infrastructure and successful strategy makes it ideally placed to continue returning above-average growth in a rapidly changing market. Kabel Deutschland and Vodafone are an ideal fit. Together, we have the opportunity to become Germany’s leading telecommunications and television provider and to create what for the German market is a unique, winning combination of fixed line and mobile communications.” The Offer is subject to customary terms and conditions, including regulatory clearances and a minimum acceptance threshold of 75%, to be set out in the Offer Document. Germany’s competition regulator the Bundeskartellamt is to investigate the bid, but whether it will conduct the investigation itself or pass it up to EU level is yet to be confirmed. played an essential role in building their capabilities over multi-year programmes. Bausch has been president and CEO of SES since 1995. Before joining the company, he had a distinguished career in the Luxembourg Ministry of Finance and occupied key positions in the banking, media and communications sectors. He was appointed in April this year to the Board of Directors of SES, where he will continue to serve as a nonexecutive Director.
SES’s Bausch to step down
THE WRAP
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