The European Commission authorised the acquisition of Amsterdam-based PPF Telecom by United Arab Emirates firm e&, according to Euractiv.
The influence of foreign companies in the bloc’s telecoms sector fuelled an ongoing debate over investment and deregulation of the sector. The commission found that e& received foreign subsidies in the form of “an unlimited state guarantee,” grants, and loans.
An EU spokesperson said that the UAE company was the only bidder for PPF Telecom Group and the purchase price reflected the market value. PPF Telecom operates in Bulgaria, the Czech Republic, Hungary, Serbia, and Slovakia, serving 10 million customers. However, the company’s operations in the Czech Republic are excluded from the deal, according to the Commission.
The Commission prohibits e& or the UAE sovereign wealth fund, the Emirates Investment Authority (EIA), from financing PPF Telecom’s single market operations.
The EU also required that the bloc’s management be informed of future acquisitions in the telecoms sector, even if they do not fulfil the notification requirements set out under the new Foreign Subsidies Regulation.
