Expect more telco M&A ahead in Europe, MS says

Elisa Oyj

04/07/2024 07:18

** After an action packed year so far in European telcos M&A
space, Morgan Stanley says there's likely still more to come
    ** "Whilst our upbeat view on the sector is based on
fundamentals, we continue to think M&A could skew the sector's
risk reward upward," MS says in a July 3 note
    ** The broker points out that the formation of the new
European Commission, on which it expects full clarity before
December, is a major catalyst for the sector
    ** "We believe the industry will be watching for any changes
in antitrust approach under the next commission" - MS
    ** It notes that more than two-thirds of European markets
have four players, leaving significant scope for consolidation
    ** Italy still has the highest consolidation potential, MS
says, adding the recently announced Swisscom/Vodafone deal
brings fixed/mobile concentration, but leaves the door open for
further action on mobile
    ** MS also sees scope for further improvement with fibre
deals core to this as the overbuild struggles to deliver on fill
rates
    

 (Reporting by Anna Pruchnicka)
 ((anna.pruchnicka@tr.com))