The Competition Council has authorized the takeover of Netcity Telecom, the underground optic fibre network operator of Bucharest Municipality, by Direct One S.A., an independent provider of fibre telecommunication infrastructure. Direct One will take over the full shares package of the operator owned by UTI Netcity Investment BV and UTI Group SA, following an agreement signed in September 2016 by the two parties.
The competition authority said that it assessed the economic concentration compatibility with the normal competitive environment, in accordance with the Regulation regarding competition. Following the analysis, the Competition Council found that the transaction does not raise significant obstacles to effective competition on the Romanian market or in a substantial part of it.
The Authority’s decision allows the parties to complete in the next period the process of acquisition as sole control over Netcity Telecom by Direct One.
“We welcome the decision of the Competition Council on this transaction, based on the complementarity of the two networks – Netcity and Direct One, namely on the minimum competitive effects that the transaction produces. We will continue the process of acquisition of Netcity as agreed with the shareholders and the financing banks,” said Marian Pantazescu, chairman of the Board, Direct One.
Direct One, a company with domestic capital controlled by Teofil Muresan and Simion Muresan, operates a national 5,500 km aerial network of fibre providing connections between cities. Netcity Telecom is the operator of “Netcity” network, in charge for its development, construction and operation, under a concession agreement signed in 2008 with Bucharest City Hall for a 49 years.
Georgiana Bendre
The post Competition Council has approved Netcity Telecom’s takeover by Direct One appeared first on Business Review.
