Telefónica meets regulatory hurdle on €8.6bn E-Plus takeover

Telefónica has edged closer to sealing the €8.6bn takeover of Germany’s E-Plus from KPN after meeting a big regulatory hurdle with a deal to open part of its network to a small rival group.

Drillisch, a German mobile provider, will acquire a fifth of the capacity of the combined network after the acquisition. The deal will meet conditions laid down by European regulators designed to offset competition concerns following the acquisition of E-Plus by Telefónica Deutschland. Telefónica’s acquisition will reduce the number of mobile operators in Germany from four to three. Drillisch, which has about 1.7m mobile customers, will become the largest provider outside the three network owners.