Nordic cable and telecom operator Tele2 and Deutsche Telekom have completed the merger of their Dutch operations. The combination of the pair’s Dutch assets will see Tele2 Netherlands absorbed by T-Mobile.
The completion of the deal follows European Commission regulatory approval at the end of November following an in-depth analysis that earlier had raised concerns about the impact of the merger on competition in the residential market.
The combination of the pair’s operations will create a more substantial number three player in the Dutch market to compete with KPN and VodafoneZiggo, the JV between Vodafone and Liberty Global.
Following the completion of the merger, Tele2 owns 25% of the enlarged T-Mobile Netherlands and Deutsche Telekom owns 75%. Tele2 also receives a cash payment of €190 million, subject to standard closing adjustments.
“This is a great milestone for Tele2 NL as well as Dutch consumers and businesses, as the merged company will accelerate competition and investments in the Netherlands,” said Anders Nilsson, president and CEO of Tele2.