Positive reactions to TeliaSonera acquisition of Tele2 Norway
Journalists as well as analysts reacted positively as the Norwegian Competition Authority, on Thursday Febraury 5th, approved TeliaSonera's purchase of Tele2's Norwegian business.
–The announcement was positively received by media and analysts. I think this acquisition is seen as a natural next step, given the market situation in Norway. Now we are eager to welcome the Tele2 employees to the TeliaSonera family, says Peter Borsos, Head of Communications, TeliaSonera Group.
During recent months the accusation authority on Norway has evaluated the proposed terms. After a thorough analysis were TeliaSonera and Tele2 presented a few different remedy packages the Competition Authority finally gave permission to proceed.
– Competition for Norwegian mobile customers primarily occurs between companies with their own mobile network. The final offer of remedies from TeliaSonera provides the basis for the development of a third mobile network in Norway. Therefore we can now approve this acquisition, said competition director Christine Meyer at the Norwegian Competition Authority
The acquisition was also well received among analysts.
– We re-iterate our Buy rating of TeliaSonera. The company is doing the right things and cash flows should benefit: this transaction provides for SEK 800m of synergies, the merger with Telenor in Denmark another DKK 800m of synergies and within two years, the “invest to save” program will yield SEK 2bn of savings pa, says Lena Österberg, Head of Research, Stockholm at Carnegie Investment Bank AB
– Also positive news as the company can continue its strategy of consolidating its Nordic footprint. The concessions appear reasonable in our view, says Erik Strandin Pers, Equity Research at Danske Bank.
– We see a synergy potential of at least SEK 1.0bn for TeliaSonera, as the deal should substantially improve the scale in the market. For the Norwegian mobile market, the deal will significantly consolidate the low-end B2C segment, and may reduce competition near-term. However, TeliaSonera’s competitiveness relative to Telenor should strengthen within B2B. We reiterate our Buy recommendation for TLSN, says Jon David Gjertsen analyst at Pareto Securities