Orange Romania, the largest provider of broadband Internet and mobile services in Romania, has entered into an agreement to acquire a controlling stake in the fixed operator Telekom Romania Communications (TKR) in order to strengthen its position in the country and increase its market share in the sector.
The reason given for Orange paying over $268 million for TKR, is that it is aiming to become the popular choice among customers for combined services in the Romanian market. Orange will gain a controlling 54% stake from the Greek company OTE, most of which is owned by Deutsche Telekom. According to Orange, the deal gives TKR a value exceeding $590.5 million. The transaction is subject to normal regulatory scrutiny and is expected to be completed in the second half of 2021.
TKR, being the second largest fixed line provider in the country, achieved revenues of over $739 million in 2019. The company offers fixed voice, broadband and pay-TV services to 5 million customers. The company also provides MVNO services through Telekom Romania Mobile and has 881,000 fixed-mobile customers. Meanwhile, Orange said it is currently the largest mobile operator in Romania, with $1.3 billion in revenue in 2019. Together with TKR, the company expects to offer services in B2C, B2B and ICT markets.
Mari-Noëlle Jégo-Laveissière, deputy CEO of Orange Europe, said: “This acquisition is an important step to accelerate our convergence strategy in Europe. Romania is a key market for Orange and a great success story. This transaction confirms our long-term commitment to the Romanian market. We are looking forward to contribute to the development of the telecoms sector through sustained investments in top performing network infrastructures and innovative services.”
“It is an important moment for the Romanian telecommunications market, which will increase its attractiveness both in terms of converged telecom services and high quality infrastructure, while increasing competition,” commented Orange Romania CEO Liudmila Climoc.