CMS advises Telefónica regarding the sale of KPN's subsidiary E-Plus

On 2 July 2014 the EU Commission conditionally approved the merger of Telefónica Deutschland (O2) and E-Plus. This is one of the biggest-ever merger control cases in the European mobile telecommunications market, with the proceedings lasting almost a year.

As a result of the approval, Telefónica Deutschland may acquire E-Plus from KPN N.V. for a cash component of EUR 5 billion plus a 20.5% interest in Telefónica Deutschland. Completion of the transaction was uncertain for reasons other than merger clearance as well: KPN shareholder América Móvil in August last year announced an unsollicited public bid on all shares of KPN and it was not known whether América Móvil would approve the sale of E-Plus to Telefónica Deutschland if it obtained control. Only after the sale was approved at the extraordinary shareholders meeting of KPN in October 2013, a request for merger clearance could be made.

A CMS team led by Oliver Thurn, Martin Kolbinger and Martin Kuhn advised Telefónica Deutschland in the transaction with KPN.

A team comprising Reinout Slot, Clair Wermers and Marlene Veenman advised Telefónica Deutschland regarding the public offer on KPN's shares announced by América Móvil in connection with the transaction regarding E-Plus.

A team led by competition law partner Michael Bauer and comprising, inter alia, Roderick Nieuwmeyer and Annemieke Hazelhoff, advised Telefónica Deutschland throughout the merger control procedure and represented the company in the proceedings before the EU Commission.