by CIO Staff

E.U. OKs Sale of AOL U.K.

News
Dec 08, 20062 mins
Mergers and Acquisitions

The European Commission Friday approved the planned sale of AOL’s U.K. Internet access business to Carphone Warehouse Group (CPW) of the United Kingdom. The deal follows recent similar sell-offs in Germany and France.

The commission said that its monthlong examination of the proposed transaction showed that in the sectors where the companies’ activities overlap, Internet access services and fixed-line telephony services, the combined entity’s share of the relevant market “would not give rise to competition concerns as the new firm would continue to face effective competitive pressure from other market participants.”

The commission is the European Union’s regulatory and executive branch.

Time Warner, AOL’s owner, has been retreating from the Internet access business in Europe, where its subscriber numbers are declining.

AOL company has about 5.9 million customers for its three European divisions, in the United Kingdom, France and Germany. In September it agreed to sell its German ISP to Telecom Italia for 675 million euros (US$853.5 million) and its French operation to Neuf Cegetel for 288 million euros (US$374 million).

CPW is an independent retailer of mobile communications, with more than 1,500 stores in Europe. As well as retailing mobile handsets and mobile connections, CPW is active in the supply of fixed-line telecommunication services to business and residential customers. It also offers narrowband and broadband Internet access services to U.K. and European residential customers.

-Paul Meller, IDG News Service (Brussels Bureau)

Related Links:

  • AOL ISP Sale to Telecom Italia OK’d by E.U.

  • AOL to Sell German ISP to Telecom Italia for $853M

  • AOL CEO Switch Raises Eyebrows

Check out our CIO News Alerts and Tech Informer pages for more updated news coverage.