Tuesday, 24 September 2024

EU clears deal by #UAE's e& for PPF in first foreign subsidy probe | Reuters

EU clears deal by UAE's e& for PPF in first foreign subsidy probe | Reuters

The EU Commission on Tuesday said it approved UAE telecoms group e&'s EAND.AD bid for parts of Czech telecoms company PPF under certain conditions, as it concluded its first probe under new bloc-wide regulation aimed at reigning in unfair competition from overseas.

The deal will see e& acquire the sole control of PPF Telecom excluding its local business in the Czech Republic.

WHY IT'S IMPORTANT
The examination of the acquisition is the first by the European Commission under the bloc's Foreign Subsidies Regulation which allows the watchdog to crack down on unfair foreign state support to their companies.

KEY QUOTE
"The foreign subsidies received by e& did not lead to actual or potential negative effects on competition in the acquisition process", the Commission said, adding: "e& was the sole bidder for the target and had sufficient own resources to perform the acquisition, which reflected the target's market value, so that foreign subsidies did not alter the outcome of the acquisition process."

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