Today the European Commission has conditionally approved the sale of E-Plus by KPN to Telefónica Deutschland. The conditional clearance follows from an in-depth investigation that lasted for ten months.

Many regard the decision as an important precedent for further consolidation in the European mobile telecommunication sector. The transaction cannot be completed before Telefónica Deutschland has met the conditions for approval. These conditions require the new entity e.g. to provide at least 20% of its network capacity to third parties on the basis of access agreements.

Role of Allen & Overy

Allen & Overy advised KPN and E-Plus during the full duration of the merger control proceedings. Allen & Overy’s Competition law partner, Kees Schillemans said: “The clearance by the European Commission followed after a very intensive process in which we came across almost all aspects of complex merger control cases. The mobile telecommunication sector eagerly anticipated the results from a merger control assessment in the biggest mobile telecommunication market in Europe. Many view the decision as the blueprint for the assessment of future mergers between mobile network operators in Europe. It was indeed a privilege to work on this case side by side with KPN and E-Plus.”

From the KPN and E-Plus side, lawyers Jasper Spanbroek, Annemiek van Buren and Dirk Grewe were closely involved with the merger control proceedings. The Allen & Overy team was led by Kees Schillemans, partner of Competition law.

The other members of the team were Tjarda van der Vijver and Kai Althaus.