Page 15 - bne_Tech_07_2020

Telecom
July 2020 www.intellinews.com I Page 15
Romanian competition body “reluctant” about Telekom Romania sale
The head of Romania's Competition Council, Bogdan Chiritoiu, expressed concerns about Deutsche Telekom's potential exit from the local telecom market and the impact on the market competition and structure, Agerpres reported.
He said that both the Romanian and European competition bodies "will be reluctant" because it is essential to make sure that the competition in this sector remains strong, Chiritoiu said on June 30, during a videoconference.
"We are worried about the exit of one of the four operators from the market. If it gets there, it is a subject that the European Commission and we will analyse. In any case, regardless of whether some decisions will be national, and some will be at the European level, we will work together. We have had discussions with the European Commission on how to coordinate if we have to consider such an operation."
Vice-president of the market regulator ANCOM, Eduard Lovin, declared last year that Telekom Romania should notify the Competition Council about its intention to sell its stake to Orange, and the European Commission must give its opinion as well.
Later, Chiritoiu specified that he did not receive anything official about the possible sale of Telekom Romania shares to Orange.
OTE and its main shareholder Deutsche Telekom (DT) reportedly agreed last December to sell
the 54% stake they hold in Telekom Romania
to French group Orange but they need the agreement of the Romanian state that is a shareholder of Telekom Romania (46%) and therefore holds pre-emptive rights over DT’s stake, sources close to the process said, quoted by Hotnews.ro. Telekom Romania handles fixed- line operations of the DT/OTE group in Romania.
An inter-ministerial group is reportedly analysing and assisting the sale of the stake, a deal of strategic importance for Romania.
However, sources quoted by Hotnews.ro indicate that the government may decide to hire an investment bank to help it decide whether to exert its pre-emptive rights, allow DT sell its stake to Orange (and keep the 46% stake) or sell its stake along with DT to Orange. DT cannot sell its stake to Orange unless a government decision on this matter is passed, the source claimed.
Ucom tries to block Team’s acquisition of Veon Armenia
Armenian telco Ucom is seeking to block an attempt by rival Team – set up earlier this year
by two former Ucom executives – to buy Veon Armenia, which operates under the Beeline brand.
Former Ucom director-general Hayk Yesayan and former deputy director and strategic director Alexander Yesayan quit in April. At the time, RFE/ RL reported that the brothers were unhappy the deal would dilute their 6% shareholding in Ucom.
They then went on to found Team and entered into talks with Veon that resulted in a deal under which Team would acquire 100% of Veon Armenia.
Team asked the State Commission of the Protection of Economic Competition (SCPEC)
to approve the deal in June. Ucom said in a statement published on its website that on June 26 the SCPEC had approached Ucom to clarify