Telefónica plans to take over Telefónica Deutschland completely – financial experts are analyzing the effects

Telefónica plans to take over Telefónica Deutschland completely – financial experts are analyzing the effects

According to a report by www.heise.de,
Telefónica has published a takeover offer for the remaining 28 percent of Telefónica Deutschland. The Spanish telecommunications group already owns almost 72 percent of the company, which primarily offers mobile phone connections in Germany under the O2 brand. Telefónica plans to focus on core markets, with Germany seen as one of the “most attractive and stable telecommunications markets in Europe”. The offer amounts to 2.35 euros per share, in fact the stock is currently trading at 2.35 euros.

The business results for the third quarter show that Telefónica Deutschland was able to increase sales by 2.2 percent to 2.1 billion euros. In the mobile phone business in particular, sales rose by 3.4 percent compared to the same period last year. The company added about 400,000 mobile customers in the third quarter, which is about a third more than the previous quarter. In total, the company has over 45 million mobile phone connections and also supplies 2.4 million landline connections.

The market entry of the fourth mobile network operator 1&1 is likely to be a challenge for Telefónica Deutschland. 1&1 was previously a major customer of O2 and acted as a reseller primarily on the O2 network. Analysts estimate that O2 has so far generated around 500 million euros per year from 1&1.

This development points to a turbulent time for telecommunications companies in Germany. With constant competition for market share and revenue from roaming contracts potentially at risk, the telecommunications market could be changing. In addition, the planned takeover of Telefónica Deutschland could have an impact on the competitive landscape in the telecommunications market and influence the position of other providers.