Reports from Reuters suggest that Saudi Arabia’s STC group is contemplating a significant move in the European telecom market by considering the acquisition of United Group, a prominent player in both telecommunications and pay-TV sectors. Citing three anonymous sources familiar with the discussions, the potential takeover could mark a substantial shift in the industry landscape.
United Group, currently owned by BC Partners since its acquisition from KKR in 2019, is reportedly in the initial stages of a sale process, with advisors gearing up to initiate proceedings in the coming weeks. Should the deal materialize, sources indicate that United Group might undergo division into two distinct regions, a strategic move aimed at maximizing value through separate regional deals.
However, it’s emphasized that discussions are still in their infancy and there’s no guarantee of a successful outcome. This potential acquisition by STC follows a recent trend of Middle Eastern telecom companies eyeing European expansion opportunities. Just last month, rumors circulated regarding Abu Dhabi-based operator group e& expressing interest in acquiring United Group, although no deal has been finalized yet.
For STC, expanding into Europe aligns with its growth strategy. In April the previous year, the company made its inaugural European foray through its subsidiary TAWAL, clinching a deal worth €1.2 billion to acquire United Group’s telecommunications tower assets. STC Group CEO Olayan Alwetaid expressed enthusiasm about the agreement, hailing it as a significant milestone in the company’s international expansion strategy.
This move into Europe was followed by STC’s acquisition of a 9.9% stake in Telefónica last September. Telefónica boasts operations in key European markets such as Spain, Germany, and the UK, further solidifying STC’s presence in the region.
As STC Group mulls over the potential takeover of United Group, the telecom industry eagerly awaits further developments, anticipating the implications of such a significant move on the European market landscape.
