According to sources, the British telecommunications group Vodafone is about to sell a large stake in the difficult Spanish market.
A share of at least 50 percent of the Spanish business will go to the London investment company Zegona Communications, as the Bloomberg news agency reported on Saturday, citing insiders. The division is valued at more than 5 billion euros. The two companies are still clarifying remaining details and an announcement could be made in the coming days. However, it is still possible that the deal could collapse. Zegona and Vodafone had already confirmed talks in September.
Vodafone is struggling with difficulties in many markets and announced austerity measures in May, which will result in the loss of 11,000 of the company’s approximately 90,000 full-time positions. The British have a difficult time in Spain in particular because there is a tough price war there. A strategic review of business on the Iberian Peninsula has been underway for several months.
The Spanish market is currently still in flux. French telecom giant Orange and Spanish provider Masmovil Ibercom are currently awaiting approval to combine their operations in the country and thus overtake Spanish telecom leader Telefonica. Whether and under what conditions the European Commission approves the planned merger is seen by experts as an indication of its general attitude towards consolidation in the European telecoms sector. Providers such as Deutsche Telekom have long criticized the Brussels competition authorities for allowing too few mergers and thus restricting the companies’ competitiveness.
/men
NEWBURY/LONDON (dpa-AFX)
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