STOCKHOLM - Vodafone's bid on Tuesday to sell its Spanish business is the latest move by European telecom firms trying to strengthen their financial health by divesting assets, consolidating markets and selling stakes to investors.
Spanish telecom companies Orange and MasMovil announced a $19 billion merger last year, set to be a test case for whether Europe's antitrust regulators have become more lenient in approving deals that reduce the number of mobile operators. Vodafone, which earlier tried buying MasMovil, announced in June a $19 billion merger of British mobile operations with CK Hutchison, and is braced for prolonged scrutiny by the regulators.In the last few years, telecom firms have been selling non-core assets such as mobile tower businesses to raise cash. American Tower and Cellnex spent billions of dollars in buying up the mobile masts.Now companies are looking to offload businesses closer to their main operations.
STC had been looking to increase its holding in Telefonica to 9.9%, worth 2.1 billion euros, and become the Spanish telecom group's top shareholder. Shakedown or smart business? Quebec restaurants balk at hefty penalty for using competitor's payment machines