Merger of PT’s TMN, SonaeCom’s Optimus to be cleared by Portuguese regulatorAugust 10, 2006
The proposal to merge the TMN mobile phone network of Portugal Telecom SGPS with the rival Optimus network of SonaeCom SGPS will be approved by the Competition Authority with certain conditions, Jornal de Negocios reported, without naming its sources.SonaeCom has said clearance of the integration of the two businesses is a condition of the alternative telecoms provider going ahead with its 10.7 bln eur bid for its larger rival.
SonaeCom projects 2 bln eur in synergies if the combination of the two mobile phone operations goes ahead.
Unification of the two mobile networks would leave Portugal with only one other other competing network, that of Vodafone Group, but SonaeCom hopes to offset this by supporting the launch of MVNO virtual mobile networks.
It has already signed one deal, with Carphone Warehouse‘s Talk Talk service, and another MVNO provider, Euphony, has said it expects to sign a contract with SonaeCom.
Publico, a newspaper owned by SonaeCom, said it has learned that the company could withdraw its bid altogether if PT proposes new anti-takeover measures which would change the PT group’s structure.
SonaeCom is also seeking to take over PT‘s majority-owned cable subsidiary PT Multimedia, lifting the potential total cost of the deal to 13.9 bln eur.