EU Antitrust Body: Won't Refer Orange Purchase of Jazztel to Spanish Authority

BRUSSELS--The European Union's antitrust body said on Monday that it wouldn't refer a decision on Orange S.A.'s 3.4 billion euro ($4.19 billion) bid for Spanish broadband and cellphone operator Jazztel to Spain's competition authorities.

The European Commission said it "was better placed to deal with the case with a view to ensuring consistency in the application of the merger control rules," in the EU telecommunications sector.

The commission opened an in-depth probe into the planned acquisition in December, placing a hurdle in the way of a deal that would significantly boost the former French telecom monopoly's market share in Spain.

The transaction, announced in September, would almost double Orange's market share in broadband Internet access in Spain, leapfrogging Vodafone Group PLC to become the country's second-largest provider in that segment. Both companies trail the market leader, Telefonica SA.

Spain is Orange's second-largest market, accounting for around 10% of Orange's revenue.

In November, Spain's competition authority submitted a referral request to the EU, seeking the power to rule on the case.

The EU's antitrust authorities now have until April 30 to make a final decision on whether the proposed transaction "would significantly impede effective competition" in the bloc.

The EU's new executive team, led by former Luxembourg Prime Minister Jean-Claude Juncker, entered office last month with a pledge to create a digital single market by breaking down national silos in telecoms regulation and competition law.

Write to Laurence Norman at [e-mail]

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