LONDON-The European Union Commission notified Vodafone AirTouch plc last week it received Phase 1 clearance for its acquisition of Mannesmann AG, moving the companies one step closer to creating a European telecom giant with more than 54 million customers in 25 countries.
“After what has been, quite appropriately, an extremely thorough investigation, I am pleased that we have been able to satisfy all the issues that were raised by the EU Commission and third parties in Phase I,” commented Chris Gent, chief executive of Vodafone AirTouch.
The $171.94 billion takeover of Germany’s Mannesmann was approved on the condition it sells Orange plc, making the U.K. company a stand-alone business and a potential rival. Vodafone also must give competitors access to its international roaming tariffs and wholesale services.
KPN Telecom of The Netherlands and France Telecom both have shown interest in buying Orange. Orange said it hopes to relaunch as an independent company by this fall.
Following months of resistance, Mannesmann’s supervisory board approved the takeover bid from Vodafone Feb. 4. Under terms of the deal, Mannesmann shareholders will receive 58.96 Vodafone shares for each Mannesmann share, giving Mannesmann a 49.5-percent stake in the new company.
