Newcomer Digi snaps up Portugal's Nowo after Vodafone deal ban

Nos SGPS SA

02/08/2024 12:41

LONDON, Aug 2 (Reuters) - Romanian telecoms firm Digi
 DIGI.BX  said on Friday it had agreed to buy Portugal's
fourth-largest operator Nowo Communications from Spain's
MASMOVIL for 150 million euros ($162 million) as it prepares to
launch services in the country.
    The acquisition follows last month's ruling by the
Portuguese competition authority barring a proposed acquisition
of Nowo by Vodafone Portugal  VOD.L , one of the three main
telecoms groups in the country.
    Telecoms market regulator ANACOM warned the three major
operators in June not to obstruct Digi's entry into the market,
and said it expected the company launch commercial operations
later this year. The market is almost entirely controlled by MEO
- owned by the Altice group - Portugal's NOS  NOS.LS  and
Vodafone Portugal.   
    Digi won licences in October 2021 to launch 5G operations in
Portugal and has been building its own network for 5G services
and fixed fibre optic telecommunications.
    Digi said in a statement on Friday that Nowo has
approximately 270,000 mobile clients and 130,000 fixed
telecommunications clients, in addition to having also 5G
spectrum licences.
    Nowo is onwed by MASMOVIL, which completed a merger with
Orange  ORAN.PA  in March to create Spain's largest mobile
operator, MASORANGE.
    Digi said the acquisition price was "subject to customary
adjustments and certain contingent events".
    Digi also operates in Spain, where its aggressive offers
have heightened competition, and Italy. 
   
    ($1 = 0.9241 euros)

 (Reporting by Andres Gonzalez in London and Sergio Goncalves in
Lisbon; Editing by Emelia Sithole-Matarise)
 ((andres.gonzalez@thomsonreuters.com; +44 (0) 7551 790019;
Reuters Messaging:
andres.gonzalez.thomsonreuters.com@reuters.net))