Telecom Lead Europe: Vodafone Group has got nod
regulatory approval from European Union (EU) regulators to complete the
proposed $1.6 billion acquisition of Cable & Wireless Worldwide (CWW).
In an official statement, the European Commission (EC)
said that the purchase of CWW would raise -no competition concerns,
as the parties’ activities are largely complementary’.
However, the Commission recognized that there is some
overlap in the two companies’ areas of activity in the United Kingdom.
The commission suggested that the soon-to-be newly formed
entity is likely to face significant competition from rivals in the market, and
as such was unlikely to distort the local market.
Recently, 59 percent of shareholders in Cable &
Wireless Worldwide (CWW) accepted the takeover offer from Vodafone.
Additionally, Orbis, largest shareholder in CWW with 19
percent also said that it would now support the 38 pence-a-share offer.
The acquisition will assist Vodafone to become
a full integrated telecom company with focus on mobile, fixed line and long
distance calls.
The acquisition of CWW will also strengthen the
enterprise business of Vodafone in UK and internationally
CWW specializes in providing communication
networks and services to large corporates, governments, carrier customers and
resellers. Its services include managed voice, data and IP-based services and applications
across the UK, Asia Pacific, India, Middle East & Africa, Continental
Europe and North America.
CWW provides voice, data and hosting services to major
British companies such as Next, Tesco and United Utilities, and retains an
international cable network connecting more than 150 countries.
editor@telecomlead.com
