Orange could be forced to approve the sale of Telekom's mobile division to RCS & RDS because of the way the two divisions were created by the German group when they bought the shares of the companies. Few people know that Telekom is composed of Telekom Romania Communications and Telekom Romania Mobile Communications, the first being former Romtelecom, the second former Cosmote, and Orange wants to buy the first division, RCS & RDS the second.
Orange wants to buy Telekom Romania Communications, which is the fixed services division, but the problem is that it currently owns 30% of Telekom Romania Mobile Communications shares. By buying this division, those from Orange also become shareholders in the mobile services division, Telekom Romania Mobile Communications, from which RCS & RDS want to buy the mobile services infrastructure, plus the radio licenses, but not the customers.
Orange OBLIGED to APPROVE the Telekom Sale to RCS & RDS
Orange, after this acquisition, will have, together with the Romanian state, a 30% stake in the mobile division, so if RCS & RDS wants to buy it, then the French group will have decision-making power in the transaction. Practically the whole situation brings RCS & RDS, Orange, Telekom into an unprecedented situation for any country where the companies collaborate, and in the end the French will decide what kind of competition they will have in our country in the future.
Orange may decide not to allow the sale of Telekom's mobile division to RCS & RDS in order not to strengthen its competition on the Romanian market, so that Telekom Romania Mobile Communications will continue to exist. Of course, the situation itself is very complicated, and Orange will have to make this decision together with the Romanian state, which complicates things even more, so no one can say from now if the sale to RCS & RDS will exist.
Orange has the strongest position by buying the fixed services division of Telekom, and this because through its takeover, it also takes control over the mobile division, so it will also directly control its competition.
