Spain approves Masmovil's $2.4 bln takeover of Euskaltel (updated)

Corporacion Financiera Alba SA

23/06/2021 13:59

(Adds detail, context, reax)
    MADRID, June 23 (Reuters) - Masmovil's 1.99 billion euro
($2.38 billion) takeover of Spanish telecoms rival Euskaltel
 EKTL.MC  has won state approval, government sources said on
Wednesday.
    The friendly merger, which received the greenlight from
Spain's competition watchdog last week but still needs final
regulatory approval, would reinforce Masmovil's position as the
fourth-largest operator in Spain's crowded telecoms sector.
 urn:newsml:reuters.com:*:nL5N2NZ0SB  urn:newsml:reuters.com:*:nL8N2LQ0HL
    Euskaltel was not immediately available for comment.
Masmovil, which is owned by private equity funds KKR  KKR.N ,
Providence and Cinven, declined to comment.
    Euskaltel's major shareholders Zegona, Kutxabank and
Corporacion Financiera Alba  ALB.MC  - which own 52.32% of
Euskaltel - agreed in March to accept the offer of 11.17 euros
per share, a 16.48% premium at the time.  urn:newsml:reuters.com:*:nL1N2LR0FI
    Spain boasts Europe's most advanced fibre network, but its
telecom sector has suffered from market fragmentation and high
overheads, with margins shrinking and debt rising year by year.
 urn:newsml:reuters.com:*:nL2N2NI1CO
    Spain's progressive coalition government has prioritised the
development of 5G mobile data in its post-pandemic recovery
strategy, earmarking nearly 30% of the 140 billion euros ($171
billion) it will receive in EU funds to a digitalisation plan.
   ($1 = 0.8371 euros)

 (Reporting by Belen Carreno and Clara-Laeila Laudette;
additional reporting by Emma Pinedo; editing by Jesús Aguado and
Jason Neely)
 ((Clara-Laeila.Laudette@thomsonreuters.com;))