CNMC approves Telecable acquisition

Spanish competition watchdog the CNMC has approved the acquisition of regional cable operator Telecable by UK-based investment group Zegona Communcations.

Zegona, headed by former Virgin Media executives Eamonn O’Hare and Robert Samuelson, agreed to acquire the Asturias region operator last month for €640 million in a deal that followed hard on the heels of Basque region operator Euskaltel’s acquisition of Galicia region operator R.

Zegona CEO O’Hare earlier told Spanish press that his company would complete the acquisition of Telecable on August 14, prior to it being listed on the London stock market under Zegona’s name on August 17.

O’Hare said that Zegona planned to maintain ownership of the operator for between three and seven years.

Geographically, Asturias sits between Galicia in the extreme North-West of the country and Cantabria, where Vodafone-owned Ono holds the cable licence, with the Basque region sitting to the East of the latter. Both Euskaltel and Vodafone are seen as possible ultimate purchasers of Telecable, along with Orange, which has expanded its presence in Spain through the acquisition of Jazztel.