KKR receives EU antitrust approval for Telecom Italia’s $24 billion fixed-line bid

The European Commission gave unconditional approval to investment firm KKR on Thursday (NYSE:KKR) acquisition of NetCo, which includes the core and core fixed network businesses of Telecom Italia (OTCPK:TIIAY) and FiberCop.

EU antitrust regulators said the proposed merger would not raise any emotions concerns about competition in the wholesale broadband market in Italy.

In October 2023, media reports suggested that KKR was planning a final multi-billion bid for Telecom Italia’s landline network as the debt-ridden former telephone monopoly looked to overhaul.

The 23 billion euro ($24 billion) offer likely included debt of about 10 billion euros and a payment of up to 2 billion euros related to a potential future combination with state-backed fiber operator Open Fiber, Reuters reported.

The Commission also found that the master services agreement that will govern the relationship between NetCo and TIIAY after the transaction is not an integral part of the transaction because it is not an agreement under which KKR acquires control of NetCo.

FiberCop is a joint venture between TIM and KKR, covering TIM’s secondary fixed-line network.