Will Reliance Telecom Acquire T-Mobile in Netherlands?

Will Reliance Telecom Acquire T-Mobile in Netherlands?

Mr. Mukesh Ambani brought a revolution in the Indian Telecom Industry with Reliance Jio. The disruption their awesome business strategy created in the market was remarkable.

Reliance is emerging as a market leader in various sectors. Be it telecom, retail, energy, natural gas, mass media, or textiles.

So now, Reliance Telecom may expand its telecom business in Europe as well.

Image Source: wikipedia

Although not confirmed officially, some sources claim that reliance plans to enter the European market. So, it plans to acquire T-Mobile Netherlands.

The market has reacted with such news, the investors already started accumulated shares of Reliance Industries and there is a jump in share price by 3.13% since last five days.

 

It is being said that Reliance is evaluating a bid for the Dutch subsidiary of Deutsche Telecom AG.

According to sources, “While Deutsche Telekom AG declined to comment, Reliance’s representative was not immediately able to comment on the matter.”

Deutsche Telecom owns ‘T-Mobile’. It is looking forward to raising $5.9 billion from the market.

For the sale of a business, Deutsche is working with Morgan Stanley and has attracted interest from few private equity funds like Apollo Global management, BC Partners, and Providence Equity Partners.

Earlier in May, Tele2’s CEO Kjell Johnson had stated that Tele2 planned to sell a quarter of T-Mobile Netherlands so that it can focus on its core markets in the Baltics and Nordics.

 

About T-Mobile

Deutsche Telekom entered the Dutch market by acquiring Belgacom SA and Tele Danmark. The business was renamed T- Mobile Netherlands in 2003.

In 2015, Deutsche considered a sale of T-Mobile to raise funds for buying wireless frequencies in the US. But eventually decided against it. In 2019, T- Mobile Netherlands merged with Tele2 AB’s operations.

The purchase of T- Mobile Netherlands by Reliance is said to being around $5.9 billion.

 

Effect of the News

In Amsterdam, the shares of KPN dropped to a three-week low of almost 4.7% when this news came into the market. Since KPN is a major competitor of T-Mobile, this drop is crucial.

 

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