The Portuguese Competition Authority (AdC) Monday approved the merger of Zon Multimedia and Optimus, despite imposing five conditions, the two companies said in a statement issued through Portuguese market regulator.
The conditions imposed by the AdC include Optimus (owned by Sonaecom) putting up its fibre optic network for sale, and giving Vodafone first refusal on its acquisition.
The decision announced by the AdC (the last day for the regulator to make an announcement) was the final step required for the merger of Zon and Optimus, which had been considered a possibility since 2007.
This deal, which will set up a new vehicle company that will own more than 50 percent of the new operator, will establish a large new telecommunications company in Portugal, with a greater capacity to compete with the Portugal Telecom group.
Together Zon and Optimus will generate revenues of 1.6 billion euros and have a 28 percent market share.
In a statement Angolan businesswoman Isabel dos Santos, Zon Multimédia’s biggest shareholder, said “the path is open for the creation of a much more robust company than those that are creating it and that will be able to compete with greater vitality and quality,” in what she said is the “difficult Portuguese market.” (macauhub)