Spain approves KKR-backed Masmovil’s $2.4bn takeover of Euskaltel

Masmovil’s $2.38bn takeover of Spanish telecoms rival Euskaltel has won state approval, government sources said on Wednesday.

The friendly merger, which received the greenlight from Spain’s competition watchdog last week but still needs final regulatory approval, would reinforce Masmovil’s position as the fourth-largest operator in Spain’s crowded telecoms sector.

Euskaltel was not immediately available for comment. Masmovil, which is owned by private equity funds KKR, Providence and Cinven, declined to comment.

Euskaltel’s major shareholders Zegona, Kutxabank and Corporacion Financiera Alba – which own 52.32% of Euskaltel – agreed in March to accept the offer of 11.17 euros per share, a 16.48% premium at the time.

Spain boasts Europe’s most advanced fibre network, but its telecom sector has suffered from market fragmentation and high overheads, with margins shrinking and debt rising year by year.

Spain’s progressive coalition government has prioritised the development of 5G mobile data in its post-pandemic recovery strategy, earmarking nearly 30% of the $171bn it will receive in EU funds to a digitalisation plan.

Source: Reuters

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