Quick View: Orange Accelerates Convergence Strategy With Telekom Romania Deal

摘要

The Latest: Orange has signed a deal to buy a 54% stake in Telekom Romania Communications for EUR268mn. DeutscheTelekom-backed OTE will maintain ownership of Telekom Romania Mobile.Implications: The deal has been in the making for some time. OTE has been exploring possible opportunities to exit the Romanianmarket and Orange’s interest in the competitor’s fixed assets has been known since last year. With this acquisition, the France-basedtelco will strengthen its market position, with a strong strategic focus on convergence. Orange is ramping up efforts to improve itsfixed network and bundled offering across Central and Eastern Europe (CEE) - with this deal following the telco’s plan to create aFibreCo in Poland – as convergence is key to market success across the region.