Three welcomes EU approval of O2 acquisition
Deal will be good for competition, good for consumers and good for Ireland
Dublin 28th May 2014: Three today welcomed the decision of the European Commission to approve the acquisition of the Telefónica O2 business in Ireland, which will take Three’s market share to 37% and bring subscriber numbers to over 2m active users. The two companies had combined revenues of €736m in 2013, which compares to Three’s revenue of €180m in 2013 on a standalone basis.
“With the combined strengths of the two businesses, Three will have the scale and financial strength necessary to compete more aggressively against the number one in the market. Our ability to invest coupled with the combined subscriber base of both businesses will create new competitive dynamics in the Irish telecoms market”, said Robert Finnegan, CEO Three. “It leaves Three optimally positioned to become the number one player by providing the best value and service to our customers.”
“Increasing access to high-quality high-speed networks for Irish businesses and consumers is an essential part of Ireland’s national economic recovery. This deal will enable Three to invest significantly in building a state-of-the-art 4G network, delivering very real benefits to customers in urban and rural areas throughout the country” Finnegan added.
“Our focus will now turn to the legal requirements to complete the acquisition which we expect to do shortly. Until then it is business as usual for Three and O2 customers”, continued Finnegan.
HWL, Three’s parent company, has so far invested over €1.1bn in the Three Irish business. This, together with the purchase of O2 Ireland and the planned investment of €300m to build a 4G network over the next three years, will bring HWL’s total investment in Ireland to circa €2bn. This investment shows HWL has great confidence in the future of the Irish market and the Irish economy.
As part of the EU approval process, Three has committed to provide network capacity and MVNO services to two MVNOs in order to facilitate new MVNO entry into Ireland with the option to acquire spectrum that may be taken up by one or the other to become a network operator. Three has also committed to offer to Eircom Meteor to continue its network sharing with O2 on improved terms with the merged network.