The British fund Zegona has notified the National Markets and Competition Commission (CNMC) of the acquisition of 100% of Vodafone’s business in Spain , an operation valued at 5,000 million euros and which was already announced by both companies at the end of the last October.
With the notification of the operation (which occurred on January 16), the first phase of its study begins, in which the CNMC has one month to make a ruling. If a more in-depth analysis is required, the purchase would move to the second phase, the duration of which could range between three and four months.
“The sale of Vodafone Spain is a key step to size our portfolio for growth and will allow us to focus our resources on markets with sustainable structures and sufficient local scale,” said Vodafone CEO Margherita Della Valle on October 31.
“We are very excited about the opportunity to return to the Spanish telecommunications market. This attractive acquisition represents our third operation in Spain, after the success of Telecable and Euskaltel. With our clearly defined strategy and our proven track record, we are confident of creating significant value for shareholders,” Zegona’s president and CEO, Eamonn O’Hare, also highlighted at the end of October.
The terms of the agreement include, among other elements, that Vodafone will provide certain services to Vodafone Spain for a total annual cost of approximately €110 million.
It also includes that Vodafone will offer Zegona a licensing agreement that will allow it to use the Vodafone brand in Spain “for a period of up to 10 years.”
Closing of the transaction, subject to regulatory approvals, is expected to take place in the first half of this year.