Telefónica has gained a notable advantage in the German market after its protracted acquisition of E-Plus from KPN was finally completed, in a takeover valued at €8.6 billion.
The acquisition, which was announced in July 2013 and brought criticism upon the European Commission from Deutsche Telekom, makes Telefónica a major player in the German market, bringing in 47 million fixed and mobile connections and consolidated revenues estimated at €8 billion.
Telefónica now holds a 62.1 percent share in the German market and has valued prospected synergies resulting from the takeover - including distribution, customer service and mobile network integration - at over €5 billion.
Dutch operator KPN agreed to sell off its German subsidiary last year after profits fell by more than two-thirds in the second quarter.
Telefónica paid €5 billion for E-Plus, with KPN taking a 20.5 percent stake in the operator as a result of the two-step sale process.
However, rival Deutsche Telekom accused the EC of creating a “massive imbalance” in the German market by approving the sale, as it meant Telefónica would have access to more than 60 percent of the region’s 1800MHz and 2100MHz frequency resources.
As a result, Telefónica was forced to sell 30 percent of its combined spectrum holdings and hand over spectrum and assets to either a new German operator or an MVNO.