VODAFONE yesterday won approval from the European Commission for its £1bn takeover of Cable & Wireless Worldwide.
Five weeks after the deal was submitted to Brussels for approval, the Commission ruled that the merger of the companies would not lead to any antitrust issues.
“The Commission concluded that the transaction would raise no competition concerns, as the parties’ activities are largely complementary. CWW’s main activity is related to fixed telecoms, whereas Vodafone is mainly active in mobile telecoms,” the watchdog said in a statement.
Elaborating on its decision to approve the deal, the Commission pointed to the “many other competitors” which offer similar services and the ability of regulators to intervene and “constrain the merged entity” if necessary.
The Commission therefore concluded that the transaction would not significantly impede effective competition in the European Economic Area or any substantial part of it.
The £1.04bn deal, unveiled on 23 April, will make Vodafone the UK’s second largest telecoms operator.