Setback to Abertis Telecom’s expansion plans
August 14, 2009
From David Del Valle in Madrid
The Spanish dominant broadcast network operator, Abertis Telecom, has backed out of the deal reached with two local broadcast networks in Andalucia and Madrid, Axion and Teledifusion de Madrid, to take over them, following the Competition Authorities imposing tougher conditions on the operation.
Abertis Telecom had planned to take an 80 per cent stake in Telefifusion and 65 per cent in Axion to strengthen its dominant position in the market, but, according to the company, new conditions from the National Competition Commission have spiked the deal valued at E107.6 million.
The Competition watchdog imposed the obligation of Albertis opening up its networks to third parties to guarantee free competition.