Norwegian telecom major Telenor and TeliaSonera today announced the withdrawal of the proposed merger of their respective business units in Denmark. The companies said have not been able to agree with the European Commission on acceptable conditions to go ahead with their plan to create a robust mobile operator.
In December last year, Telenor and TeliaSonera had reached an agreement to merge their Danish operations. The new joint venture would have created a mobile operator that would be able to increase investments in networks and technology, to the benefit of the Danish customers.
"Since the beginning, we have been strong advocates for the need to increase investment levels in Denmark. In our view, creating a market player with the scale and ability to compete and invest would ensure that customers and businesses would benefit from better quality, speed and coverage," said Robert Andersson, executive vice president and head of European operations of TeliaSonera.
However, the merger discussions have now reached a point where it is no longer possible to gain approval for the proposed transaction.
"In the interests of both companies, we felt it necessary to act decisively. Telenor and TeliaSonera will continue to compete and deliver products and services in the Danish market through our respective original, and still fully up-and-running Danish operations," says Kjell Morten Johnsen, executive vice president and head of European operations of Telenor.
Telenor and TeliaSonera said they now continue to review the strategic options in the Danish market.