Orange reached an agreement with Telekom to buy the fixed services division, and the Romanian Government approved the plan of the two companies, so that the French group will pay 268 million euros for 54% of the division's shares. The amount is small compared to the division's revenues and the number of customers, so Orange seems to have a good acquisition, but it also comes with other complications, especially on the part of approving the transaction with Telekom.
Orange cannot complete the purchase of Telekom's mobile services division until it is approved by the European Commission, considering the large number of clients involved in the agreement. It was known from the very beginning that an approval from the European Commission would be needed for the sale of Telekom's fixed services division to Orange to be completed, and the documents have most likely gone to the European authorities already.
Orange: Very IMPORTANT announcement regarding the Telekom Purchase
Orange it also needs approval from the Competition Council so that the transaction can be carried out, and this will come only after the one from the European Commission, according to previous statements. If an approval comes from the European Commission for this acquisition, then it is more than certain that a similar one will come from the Competition Council, so that Orange will be able to complete everything without problems.
Orange it will also need other approvals, including from CSAT, and this is because the infrastructure of Telekom is related to national security, so a decision will also be needed from there for the purchase. All in all, approvals are expected that would "push" the completion of the transaction to the middle of 2021, so there is still a lot to be expected, but it is important for Orange and Telekom that the approvals come in the end.
Orange needs the fixed services division of those from Telekom to be able to expand its offer of fixed services as it wants, without being limited by the wishes of the German group, the scandal with Eurosport being a good example in this regard.
