The European Commission has given the green light to the acquisition of PPF Telecom, based in Amsterdam, by the United Arab Emirates company e&, according to a press release issued on Tuesday, September 24. This approval is subject to certain conditions and marks a significant milestone in the European telecommunications landscape.
The Commission conducted an investigation to determine whether subsidies granted by the United Arab Emirates to e& had negative effects on competition during the acquisition process. This scrutiny is part of the ongoing debate about the influence of foreign companies in the European Union telecommunications sector.
In its investigation, the Commission found that e& had received foreign subsidies in the form of:
– An unlimited state guarantee
– Grants
– Loans
However, the press release notes that these subsidies “did not lead to any actual or potential negative effects on competition in the acquisition process.” The Commission emphasized that e& was the sole bidder to acquire PPF Telecom Group and that the acquisition price reflects market value.
PPF Telecom has operations in several countries in Eastern Europe:
– Bulgaria
– Czech Republic
– Hungary
– Serbia
– Slovakia
The company serves 10 million customers in these markets. It is important to note that operations in the Czech Republic are excluded from the transaction, as reported by the Commission.
To ensure fair competition and protect the single market, the Commission has imposed several conditions:
– e& and the UAE sovereign investment fund that controls e&, the Emirates Investment Authority (EIA), are prohibited from funding PPF Telecom’s activities in the single market.
– e& must inform the European Commission about future acquisitions in the telecommunications sector, even if they do not meet the notification requirements set in the new Foreign Subsidies Regulation.
– To prevent e& from continuing to benefit from unlimited state aid, the Commission requires that e&’s statutes “do not deviate from UAE’s ordinary bankruptcy law.”
This decision by the European Commission reflects the delicate balance between attracting foreign investment and protecting the interests of the European single market in such a strategic sector as telecommunications.
Source: [Euractiv](https://www.euractiv.com/section/digital/news/commission-approves-the-acquisition-of-european-telecom-company-by-uae-firm/)