Proposed Acquisition of YESSS! by Telekom Austria Group in Phase II of the Merger Control Proceedings
The Austrian Federal Competition Authority has kicked Telekom Austria’s proposed acquisition of Orange’s YESSS! brand into the tall grass, by applying for an in-depth assessment (Phase II) of the deal by the Cartel Court. The in-depth assessment may take up until the end of November 2012.
YESSS! Telekommunikation is currently owned by Orange Austria, and is a target for Telekom Austria as part of a wider deal that will see H3G acquire the bulk of Orange Austria. The impact of YESSS! on the market was widely credited with TA’s introduction of its BoB brand, a similar no-frills, low-cost brand.
But the Austrian Federal Competition Authority has decided to apply for an in-depth assessment. Clearly disappointed, Telekom Austria said this decision was despite its “timely submission of detailed information as well as proposed remedies” to enable swift and efficient proceedings.
“For the benefit of our customers, I am hoping for a swift decision”, Hannes Ametsreiter, CEO of the Telekom Austria Group, commented with regard to the FCA’s decision.
Ametsreiter will not be the only one hoping for a swift decision: the investigation will also impact on H3G’s acquisition of Orange, as the divestment of the YESSS! brand is a condition of that deal’s approval.
The Federal Competition Authority said that Telekom Austria and YESSS! together would have more than 39% of the mobile voice market and more than 53% of the market for combined broadband plus mobile deals.