09.06.17, 10:32 am
German Federal Cartel Office grants approval for the strong fourth player in the German telecommunications marketShare
- United Internet and Drillisch make substantial further progress
- German Federal Cartel Office approves the planned overall transaction without conditions
- Acquisition of 1&1 Telecommunication by Drillisch in exchange for the issue of new shares to United Internet is now only subject to the effective approval at Drillisch’s extraordinary general meeting on July 25
Montabaur/Maintal, June 9, 2017. United Internet AG and Drillisch AG made substantial further progress towards the creation of a strong fourth player in the German telecommunications market. Today, the German Federal Cartel Office has approved the planned overall transaction without any conditions. On May 12, 2017, United Internet and Drillisch had agreed that Drillisch will take over the mobile and fixed-network business with retail customers bundled in 1&1 Telecommunication SE in a step-by-step transaction from United Internet. In return, United Internet receives new Drillisch shares from two capital increases by way of contribution-in-kind. Subject to the required approval at Drillisch’s extraordinary general meeting, United Internet’s stake in Drillisch will rise to at least 72.7 percent.
Drillisch already successfully accomplished the first step of the transaction with an acquisition of a 7.75-percent stake in 1&1 Telecommunication SE through the completion of the first capital increase by way of contribution-in-kind on May 16, 2017. However, the synergies expected by the companies, which should increase to €250 million annually by 2025, can only then be realized if the overall transaction is completed successfully. Therefore, both companies keep working constantly towards the second step of the transaction, i.e. the acquisition of the remaining 92.25 percent of 1&1 Telecommunication SE by Drillisch in exchange for the issue of new Drillisch shares. The required approval for the execution of this step in accordance with antitrust law was granted with today’s decision of the German Federal Cartel Office. Thereby, the complete acquisition of 1&1 Telecommunication SE by Drillisch and the completion of the overall transaction are now only subject to the effective approval of the Drillisch shareholders at the extraordinary general meeting on July 25, 2017.
The transaction includes a voluntary public tender offer by United Internet to all external Drillisch shareholders. According to the offer document published on May 26, 2017, this offer is subject to merger control approval. With today’s decision of the German Federal Cartel Office, this condition is fulfilled. The tender offer is now unconditional.PDF