The Competition Authority has announced that the review process for the merger of Nova, Sýn and ITP has begun. The Competition Authority has received a merger notification regarding the acquisition by ITP ehf. of all shares in the companies S8108 ehf. and Nova Sendastaðir ehf. The companies being sold are recent holding companies of Nova hf. and Sýn hf., holding all passive telecommunications infrastructure of the companies that are considered major transmitter sites (e.g. macro sites), and consist of towers and masts on building rooftops. The acquired companies therefore own a total of 367 transmitter sites previously owned by Sýn hf. and Nova hf., or approximately 200 sites owned by the former and 167 sites owned by the latter. According to the merger agreement, however, the merger only includes passive infrastructure and not any active transmission equipment, e.g. cables or aerials.
According to the merger partners, ITP ehf. is a holding company that was specifically established in connection with the merger. The company is under the ultimate control of Colony Capital, an international real estate and investment company listed on a US stock exchange. Digital Colony Partners (Cayman) LP, which is controlled by Colony Capital, is a fund under management that focuses on investments in digital infrastructure, such as telecommunications towers, data centres, and small cell networks (e.g. small cell networks) and cable networks (e. fibre networks) and including inactive telecommunications infrastructure.
The purpose of ITP ehf. is therefore to own S8108 ehf. and Nova Sendastaðir ehf. and to provide services through these two companies, which in competition law has been defined as facility leasing (e.g. Hospitality services) on inactive telecommunications infrastructure. If the merger is implemented, Sýn hf. and Nova hf. will purchase services from ITP relating to the use of the inactive infrastructure sold pursuant to the merger schedule. It therefore appears to be the aim of the merger to establish a new, independent tower company as a service provider for the leasing of site space on passive telecommunications infrastructure in Iceland, which, in the merger parties' view, will benefit competition and mobile network operators.
It should be noted that Sýn hf. and Nova hf. have for the past few years operated their mobile distribution networks jointly, pursuant to a decision by the Competition Authority. No. 14/2015, Exemption for Vodafone and Nova regarding cooperation on the operation of the distribution network.
The merger document without confidential information can be accessed here. Market participants are hereby given the opportunity to submit views on the merger, such as its impact on your business and/or on competition in the telecommunications and television markets.
Comments are requested to be submitted to the Competition Authority no later than 1 July at the email address samkeppni@samkeppni.is – marked „Merger of ITP ehf., Nova hf. and Sýn hf..“
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