Norway-based operator Telenor has agreed struck a deal with Nordic telco TeliaSonera to merge their Danish operations, in a deal designed to create a “robust mobile contender” in Denmark.
Each firm will own a 50% stake in the new joint venture, which will have a combined mobile subscriber base of around 3.5 million and a market share of roughly 40%.
“The need for consolidation in the Danish telecom market has been apparent for a while as operators face continued pressure on revenues and profitability, limiting the room for investments and innovation,” said the firms, in a statement announcing the deal.
Telenor and TeliaSonera cooperated in the Danish mobile market since 2012, but said that a new, independent and full-function joint venture is the “strategically preferred route to capture synergies and to create value.”
“By combining the assets and customer bases of Telenor and TeliaSonera in Denmark, the joint venture will become a robust operator. We will be able to offer our customers a high-quality network with outstanding connectivity and the best customer experience in Denmark,” said Kjell Morten Johnsen, executive vice-president (EVP) and head of Telenor’s Europe region.
Robert Andersson, EVP and head of the Europe region at TeliaSonera, added: “We are making a necessary and natural move by forming a joint venture with Telenor building on the network partnership we already have with them. By joining forces we can secure investments in Denmark, to the benefit not only of our customers but to the Danish society as a whole.”
Telenor and TeliaSonera said they have agreed upon the key transaction terms of the deal, which were not disclosed. EU clearance and the closure of the transaction is expected in 2015.