Deutsche Telekom buys Orange NL
28 September 2007 FRANKFURT (AFP) - German telecommunications group Deutsche Telekom pursued its international offensive on Friday, announcing the purchase of Dutch operator Orange Netherlands from its parent group, France Telecom.
28 September 2007
FRANKFURT (AFP) - German telecommunications group Deutsche Telekom pursued its international offensive on Friday, announcing the purchase of Dutch operator Orange Netherlands from its parent group, France Telecom.
Deutsche Telekom is to pay EUR 1.3 billion for the mobile telecoms company, increasing its Dutch customer base "by more than 2.1 million to around 4.8 million," a statement said.
The deal, which has already been approved by the European Commission, was expected to be closed on 1 October.
In addition to reinforcing its position in the competitive Dutch market, the German group is aiming for cost savings of around EUR 1.0 billion, including 500 million within six years.
Its T-Mobile Netherlands unit is currently the third biggest mobile operator in the country, behind KPN and Vodafone NL, while Orange is number four.
"We have promised to focus on growing abroad," the statement quoted Deutsche Telekom chairman Rene Obermann as saying. "This move clearly underlines our expansion efforts."
On 17 September, the group said its mobile telecoms unit T-Mobile would buy US firm SunCom Wireless for USD 2.4 billion (EUR 1.7 billion) including debt.
A France Telecom spokesman told AFP in Paris that "Orange Netherlands did not have critical mass because four operators had their own networks and around 40 MVNOs (Mobile Virtual Network Operator) were present in the Netherlands.
"Following a portfolio review the decision was taken to find a buyer," he said.
"Deutsche Telekom's offer was the most interesting one."
[Copyright AFP 2007]
Subject: Dutch news