Vodafone moved closer to finalizing its $1.7 billion acquisition attempt of Cable & Wireless Worldwide, having this week garnered approval from the European Commission. The regulatory body noted that the proposed deal “would raise no competition concerns, as the parties’ activities are largely complementary,” as Vodafone is focused on the wireless space and C&W is mainly a wireline operator.
“Vodafone and [C&W] activities overlap in a number of markets in the fixed and mobile telecommunications markets in the [United Kingdom],” the EC noted in a statement. “However, the commission found that the impact of the transaction on these markets is likely to be small as the combined entity would continue to face significant competition from other market players post-transaction.”
The EC went on to echo a number of benefits proffered by Vodafone for the deal, including benefits to consumers in offering services across verticals in the United Kingdom and Ireland. In addition, the EC noted that a combined Vodafone and C&W would not have enough market control to shut out rivals in either the wireless or wireline market.
Currently mobile phone giant Vodafone has equity interests in more than 30 countries, including a 45% stake in Verizon Wireless. The company expects that the acquisition of C&W, which has an extensive cable network in Europe and Asia, will strengthen its enterprise business in the U.K. and around the world.
Vodafone gained initial approval from C&W shareholders for the deal in April, with a holdout by Orbis Holdings settled last month.
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