Tele2 AB (Tele2), has agreed to sell its Norwegian business ‘Tele2 Norway’, the third largest mobile operator in Norway with a customer base of 1.2 million to TeliaSonera. The transaction which is valued at SEK 5.1 billion is subject to regulatory approval from the Norwegian Competition Authority.
In a separate statement, TeleSonera said that the transaction will increase its mobile market share in Norway to approximately 40 percent from 23 percent while the mobile subscription base will increase to 2.7 million from 1.6 million. It added that the acquisition will enable the 98% penetration for 4G in the country to be reached by 2016, 2 years ahead of the earlier expected timeline of 2018.
“Since we formed Tele2 Norway in 1995 we have built a successful mobile business of 1.2 million customers. We are proud to have strong brand names, an effective organization, and talented employees. However, the competitive constraints we faced without resources on the multiband frequency required us to evaluate different options for our Norwegian businesses. Whilst we have not been able to complete our originally desired strategy, the proposed deal is good for our customers, shareholders and for Tele2 as a whole. This is an attractive transaction at a good valuation and it enhances our opportunities to challenge and take new steps on other markets.”
– Mats Granryd, President and CEO, Tele2 AB
“The transaction will bring together two great players in the Norwegian market. The combined strength will create a company that is better able to serve Norwegian mobile customers and businesses. One immediate benefit of the combination is a more rapid nationwide rollout of 4G, to enable further value creation and growth in the Norwegian market.”
– Arild Hustad, CEO, Tele2 Norway