IP/06/36
Brussels, 13th January 2006
Mergers: Commission approves acquisition of joint control of Q-Telecommunications by TPG IV and Apax The European Commission has cleared under the EU Merger Regulation the proposed joint acquisition of Q-Telecommunications (“Q-Telecom”), the smallest mobile telephony operator in Greece, by TPG Advisors IV (“TPG IV”) and Apax Partners Holdings (“Apax”), private investors who already jointly control the third largest Greek mobile telephony supplier, TIM Hellas. After a thorough investigation the Commission has concluded that the operation will not result in a significant impediment to effective competition in the European Economic Area or any substantial part of it.
TPG IV is a US-based private equity investment fund which invests in a variety of sectors; Apax is the parent of a number of private investment management and advisory companies dealing with private equity investments in Europe.
Q-Telecom is the fourth largest mobile telephony supplier in Greece that only has a limited own network and carries out activities in retail mobile telephony, with a focus on the most populated cities in Greece.
Through the combination of Q-Telecom and TIM Hellas the merger will create a stronger third alternative to the two leading mobile operators, former incumbent Cosmote and multinational Vodafone-Panafon.
The Commission investigated the horizontal effects of the planned operation on the Greek retail mobile telephony market. In particular, the Commission examined the opportunities for new entrants to enter the market, the possibilities for end-users to switch supplier and considered possible narrower segments of this market.
Even though there will be three players in the market for the supply of mobile telephony services and products to end-users in Greece following the merger, the Commission’s examination of the deal has revealed that the horizontal overlap in the parties’ activities resulting from the transaction has no negative impact on competition, in particular due to the presence of strong competitors.
