Telekom is one of the largest telecommunications groups in Romania at the moment, with millions of customers using its fixed or mobile services, but the German group that owns companies from our country wants to sell it. We know from last year that Telekom would have reached an agreement with Orange for the sale of the fixed services division, something that would have been discussed including with Prime Minister Ludovic Orban at the end of 2019, but we are in July, and the transaction has not been completed.
Telekom he is waiting for the Romanian authorities to tell him if he can complete the sale of the fixed services division, but the president of the Competition Council reportedly told the Romanian press that there is reluctance regarding the sale. Apparently, this reluctance exists both at the level of institutions in Romania and at the level of the European Commission, and this is because the departure of Telekom could weaken the competitive environment in our country, which is completely possible.
Telekom: THE PROBLEM in Romania without a very Fast Solution
Telekom it currently has a series of promotional campaigns that, if we are 100% honest, brought others to its competitors, so the company has a strong position and generates active competition on the market. The problem for Telekom is that if neither the Competition Council, nor the European Commission, want to allow the sale to Orange, there is no alternative solution for finalizing the agreement that would have been initialed with the French group.
Telekom he wants to sell the fixed services division as well, but for this he has not yet found a buyer, and the process is quite complicated because RCS & RDS would have wanted to make the purchase, but without customers. What the Romanian authorities tell us is that Telekom could be forced to stay here if it is considered that the departure would affect the competitive environment, but it is possible that if the European Commission gives the "green light", it will also come from the Council Competitors and the Government of Romania.
Telekom it still has a long time to wait until it receives any approval for sale, and this is because at the moment the Romanian Government is busy with other problems, and the local and Parliamentary elections are coming in the fall, so the attention of the institutions will be in other areas.
