EU antitrust regulators opened on Friday an in-depth probe into Telefonica’s (TEF.MC) (O2Dn.DE) proposed 8.6 billion euro ($11.9 billion) takeover of KPN’s (KPN.AS) German unit, saying the deal may reduce competition in the German mobile market.
Spanish telecoms provider Telefonica’s takeover of KPN’s E-Plus will put it on par with market leaders Deutsche Telekom (DTEGn.DE) and Vodafone (VOD.L).
“At this stage, it cannot be excluded that the reduction in the number of competitors following the merger would increase the likelihood that MNOs (mobile network operators) will coordinate their competitive behavior and increase prices,” the European Commission, which acts as the EU’s competition watchdog, said in a statement.
The European Commission set a May 14 deadline for its decision. Reuters had reported on December 12 that the EU watchdog would examine the case in detail.
The case is crucial for the European telecoms industry, which sees itself in need of consolidation but is wary of competition regulators demanding onerous concessions to ensure a level playing field among fewer players.
In 2012, the Commission allowed Hutchison (0013.HK) to buy Orange’s (ORAN.PA) Austrian unit on the condition that they would help new operators to enter the market.
According to Citigroup analysts, Telefonica and KPN will need to make some significant concessions to get regulatory approval.
“We expect Telefonica Deutschland/E-Plus will be mandated to offer some form of a wholesale reference offer to be available to (mobile virtual network operators) MVNOs/service providers and on a national roaming basis (in case a new entrant emerges),” they wrote in a client note.
EU regulators may want a fourth mobile operator to boost competition as the deal reduces the number of mobile providers in Europe’s biggest market from four to three, technology and telecoms consultant firm Rewheel said in a note last month.
Source: Reuters
By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-The Bulls dominated the Nigerian Stock Exchange (NSE) as the All Share Index (ASI) climbed 1.88 percent (1.88%) over the week to hit 39,563 points mark.
Financial Markets Report in the review period by Investment One Financial Services Reports that the NSEASI delivered 38.11% Year to Date (YTD) return in Dollar terms ahead of other key global indices.
‘’At the moment, the benchmark index stands at 28.11% premium to the YTD low and trades at 1.14% discount to the YTD high’’ the report affirmed.
The NSE’s stock market weekly report for the review period, showed that six (6) of the NSE indices appreciated during the week: the NSE 30, NSE Consumer Goods, NSE Banking, NSE Oil/Gas, NSE Lotus II and NSE Industrial Goods indices rose by 1.43%, 0.42%, 1.35%, 0.51%, 1.99% and 2.97% respectively.
On the contrary, the NSE’s Insurance index slipped by 0.98% to close lower at 148.00 while the NSE ASeM index remained unchanged opening and closing at 962.31 respectively.
Similarly, market capitalization at the Nigerian bourse appreciated by 1.88% to close at N12.661 trillion.
In terms of summary of price changes, 43 equities appreciated in prices during the week higher than 26 the previous week. Contrary to this, 34 equities depreciated in prices lower than 51 of the past week, while 121 equities remained unchanged higher than 120 of the preceding week.
The NSE in the review period reported a turnover of 2.726 billion shares worth N18.777 billion in 22,228 deals traded by investors on the floor of Nigerian Bourse compared to a total of 2.767 billion shares valued at N18.671 billion that exchanged hands last week in 24,007 deals.
The NSE’s weekly report affirmed that the Financial Services Industry (measured by volume) led the activity chart with 2.211 billion shares valued at N11.720 billion traded in 11,483 deals; thus contributing 81.10% and 62.42% to the total equity turnover volume and value respectively.
However, the Conglomerates Industry followed with a turnover of 303.055 million shares worth N1.387 billion in 1,792 deals; contributing 11.12% and 7.39% to the total equity turnover volume and value respectively.
While in the third place is the Consumer Goods Industry with 84.149 million shares worth N3.399 billion in 4,300 deals.
The NSE reported that trading in the top three (3) equities namely, FCMB Group Plc, Unity Bank Plc and Transnational Corporation of Nigeria Plc (measured by volume) accounted for 1.538 billion shares worth N3.638 billion in 2,655 deals, contributing 56.44% and 19.38% to the total equity turnover volume and value respectively.
Union DICON Salt Plc led in the top 10 price gainers for the week with a gain of N1.43 as it opened with N9.57 and closed the week at N11.00 indicating a percentage change of 14.94%.
While Union Bank of Nigeria Plc (UBN) led the chart on the top 10 losers’ lists as it opened the wek with N9.90 and closed at N8.65; showing a decline of -12.63 in the review period.
