FEBRUARY 18, 2013
FCO deems remedy package offered for Tele Columbus acquisition insufficient
- Substantial network divestments as offered by Kabel Deutschland did not overcome Federal Cartel Office’s objections
- Further remedies as required by the FCO commercially not reasonable
- Prohibition of transaction expected
- Focus on exploiting organic growth potential
The German Federal Cartel Office (‘FCO’) today informed Kabel Deutschland (‘The Company’) of its preliminary assessment on the remedy package offered on January 22, 2013. The FCO judges the proposed divestment of network assets as insufficient to overcome its concerns.
Kabel Deutschland offered the disposal of Tele Columbus networks in the cities of Berlin, Dresden and Cottbus. The FCO, however, requires the divestment of approximately 60% of the Tele Columbus networks in Eastern Germany – twice as many as offered by Kabel Deutschland.
The Company regrets the Cartel Office’s assessment. Kabel Deutschland’s remedy offer was far reaching and went to the commercial limit. The envisaged transaction would have benefited infrastructure competition as well as consumers. As a result of the envisaged acquisition, over 900 thousand households in Eastern Germany would have obtained first-time access to high speed internet over cable. In addition, Kabel Deutschland would have become active outside its current footprint by entering into competition for contracts with housing associations in North Rhine-Westphalia and Hesse.
Irrespective of today’s outcome on the Tele Columbus acquisition, Kabel Deutschland will continue to pursue its strong organic growth strategy focusing on Internet & Phone and Premium TV. The Company’s superior broadband infrastructure and products provide a unique basis for sustained growth over the coming years.
About Kabel Deutschland
Kabel Deutschland (KD), Germany’s largest cable operator, offers its customers digital, high definition (HD) and analog TV, Pay TV and DVR offerings, Video on Demand, broadband Internet (up to 100 Mbit/s) and fixed-line Phone services via cable as well as mobile services in cooperation with an industry partner. The publicly listed company (MDAX, MSCI Europe, Stoxx 600 Europe) operates cable networks in 13 German federal states and supplies its services to approximately 8.5 million connected households. As of November 1, 2012, Kabel Deutschland had approximately 3,500 employees. In fiscal year 2011/2012 (12 months ended March 31, 2012), the Company reported revenues of €1,700 million and an Adjusted EBITDA of €795 million.
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