Published: 7/7 2014
TeliaSonera acquires Tele2's operations in Norway for a value of SEK 5.1 billion on a debt-free basis. The company has also committed to achieving 4G coverage of 98 percent of the population by the year 2016, two years earlier than required.
The transaction will increase TeliaSonera's mobile market share in Norway to approximately 40 percent from 23 percent and mobile subscriptions will increase to 2.7 million from 1.6 million. To demonstrate the customer benefit of consolidation, Teliasonera is accelerating 4G rollout to reach 98 percent population coverage by 2016 instead of 2018.
- I am very happy that we have been able to reach an agreement on the acquisition of Tele2 in Norway. Strategically, the business fits well into TeliaSonera and the acquisition is in line with our ambition to strengthen our position in our core markets. At the same time, it is possible for us to invest both faster and more in delivering the best services for the benefit of Norwegian customers and Norwegian society, says Johan Dennelind, President and CEO of TeliaSonera.
The merger is estimated to entail integration costs of SEK 250–450 million, and investments to handle the increased traffic are estimated at SEK 350 million. Significant cost synergies are also expected, they are estimated at at least SEK 800 million per year from 2016.
- We look forward to welcoming Tele2's staff and customers to NetCom and the TeliaSonera family. The larger scale of our operations improves our competitiveness and ability to offer mobile internet services to businesses and consumers throughout the country, including rural areas where large investments are required, says August Baumann, head of TeliaSonera's Norwegian operation NetCom.
Once the acquisition is completed, NetCom will offer all Tele2 customers access to a nationwide 4G network, which currently reaches 3.2 million people in Norway and by 2016 practically all Norwegians. TeliaSonera will continue to offer several different brands on the Norwegian market, both premium and challenger.
The acquisition is subject to approval from the Norwegian Competition Authority and is expected to be completed by the first quarter of 2015.
