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UPDATE 1-Norway may block Telia's acquisition of Phonero
February 27, 2017 / 2:23 PM / 10 months ago

UPDATE 1-Norway may block Telia's acquisition of Phonero

(Adds comment, transaction details)

Feb 27 (Reuters) - Norway’s competition authority on Monday said it may block Nordic telecom operator Telia Company’s planned 2.3 billion Norwegian crowns ($276 million) acquisition of Phonero due to competition concerns in the business segment.

* Norway’s competition authority said measures taken by Telia have not been sufficient to alleviate concerns regarding competition in business segment, although Monday’s decision is not a final one

* Telia said its Norwegian market share in the enterprise segment is currently 13 percent, and would increase to 26 percent through the acquisition of Phonero. This would boost competition it added

* The companies now have 15 days to comment on the regulator’s opinion

* A Telia spokeswoman said the company will evaluate and analyse the preliminary decision and reply within 15 working days

* Telia said in December it had agreed to acquire Phonero, with net sales of NOK 1,104 million and adjusted EBITDA of NOK 217 million, and expected annual cost synergies of approximately NOK 400 million

* Norway’s competition authority says deadline for a final decision is April 10

* Telenor is the largest player in the Norwegian telecoms market Further company coverage: ($1 = 8.3424 Norwegian crowns) (Reporting by Olof Swahnberg and Terje Solsvik, editing by Camilla Knudsen)

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