Published: 3/12 2014
TeliaSonera and Telenor have entered into an agreement to merge their Danish operations into a new joint company where the parties will own 50 percent each. The joint company will be a robust mobile operator that can increase investments in mobile networks, which benefits our customers.
- We are taking a necessary and natural step by forming a joint venture with Telenor, with whom we already have close network cooperation. By joining forces, we can secure greater investments in Denmark, to the benefit not only of our customers but of the entire Danish society, says Robert Andersson, EVP and Head of Region Europe at TeliaSonera.
The new company will have approximately 3.5 million mobile subscriptions. The transaction creates a stable mobile operator with a combined market share of approximately 40 percent, a turnover of just over 9 billion Danish kroner and significant potential for synergies.
The need for consolidation in the Danish telecoms market has been obvious for a long time. Operators face continued pressure on revenue and profitability, which limits the scope for investment and innovation. Since 2012, Telenor and TeliaSonera have cooperated in Denmark within the framework of a joint mobile network. The parties now agree that an independent and jointly owned company is the strategically best way to achieve synergies and create value.
- The competition in Denmark is tough and we face continued pressure on revenues and profitability, which makes consolidation inevitable. By combining TeliaSonera's and Telenor's assets and customer bases in Denmark, we create a robust operator. We will be able to offer our customers a high-quality network with the best coverage and the best customer experience in Denmark, says Kjell Morten Johnsen, EVP and head of Telenor Region Europe.
