Orange is in the process of buying the fixed services division from Telekom, the Romanian state being notified, the entire verification mechanism being set in motion, and all because the Germans want to flee Romania quickly. The problem is that Orange would have this acquisition analyzed by the European Commission, and this is because we are talking about a very important transaction not only for Romania, but also for the competition environment on the European continent.
Orange, by buying the fixed division of Telekom, will also buy shares in the mobile division, more precisely a 30% participation share, which it will hold in co-ownership with the Romanian state. The problem is that RCS & RDS wants to buy the mobile services division, and this means that if Orange buys the fixed division of Telekom, then it will have to approve the sale of this division to RCS & RDS, which represents a problem in the competitive environment.
Orange: here's WHY you can be BANNED from BUYING Telekom
Orange will have this acquisition analyzed by the European Commission, and it could ban it since the French group will buy shares in a competing mobile services company. The situation itself is a very complicated one, because Orange, as a competitor of RCS & RDS, should decide whether to strengthen its position on the market or not, which the European Commission could see as a possible serious problem.
Orange could be forced to buy the fixed division of Telekom only after the mobile division is sold to RCS & RDS, or after those shares are bought back by the fixed services division. The situation itself is very complicated, and the European Commission should decide if it will allow even more serious complications by allowing those from Orange to buy a share package in a competing mobile company.
Orange will have a lot of explanations to give to those from the European Commission, and will have a lot of assurances to offer to complete the transaction, if not RCS & RDS will manage to buy the mobile division in the meantime.
