Tim: EU green light for Kkr's network purchase. Share price rises from -10% to +1.5% at close
The European Commission has unconditionally approved the acquisition of NetCo by Kkr, concluding that the transaction does not raise competition concerns in the European Economic Area
2' min read
2' min read
The European Commission has unconditionally approved Kkr's acquisition of NetCo, concluding that the EUR 22 billion deal does not raise competition concerns in the European Economic Area. NetCo comprises the primary and backbone fixed telephony network assets of Telecom Italia S.p.A. (Tim) and FiberCop, the joint venture of Tim and Kkr responsible for Tim's secondary fixed telephony network.
The transaction is significant because it marks the first time that a former telephone monopoly in a major European country has divested its fixed network.
Tim on a rollercoaster
On the news Tim's share price slashed its losses in the Italian stock market, after it had dropped as much as 10% during the session, and ended the day up 1.55% at EUR 0.25. The day's selling on the tlc company's share price comes on the heels of the publication of the first-quarter numbers (released on the eve of the trading session after the markets closed), which were in line with expectations. Analysts say they are confident that, with the approval of the NetCo divestment, we will see a return of interest in the stock in the short term and the closure of short positions.
Giorgetti's satisfaction
"We welcome with great satisfaction the unconditional green light from the European Commission on the acquisition of Netco by Kkr: the historic skein has been unravelled". This was stated by Economy and Finance Minister Giancarlo Giorgetti after the European Commission's decision on the Tim dossier. "It is a success of the Italian strategy and now we are moving towards a closing soon. The government's decision,' Giorgetti concluded, 'to participate in the operation has been rewarded.
TIM's fixed network covers almost 89% of the homes in Italy and its fibre and copper cables extend over 23 million km. The sale of the network is part of a government-backed plan to reduce Telecom Italia's debt.
