Vodafone’s Greek unit terminates merger talks with Wind Hellas
06 Feb 2012
British telecom giant Vodafone Group Plc today terminated discussions on a potential merger of its Greek unit with Wind Hellas due to opposition from the European regulators.
Vodafone said in a statement today that its Greek unit and Wind Hellas, Greece's second- and third-largest mobile-phone service provider, ''agreed to terminate discussions relating to a potential business combination.''
The talks ended as European regulators were concerned that the merger would leave with only two operators in the market.
The move has dealt a blow to debt-ridden Wind Hellas, the smallest of the three mobile service operators in Greece, which has been struggling to compete with market leader Cosmote, a unit of former state monopoly Hellenic Telecommunications Organization SA (OTE), now controlled by Deutsche Telekom.
Vodafone itself is not doing well in Greece and had earlier said that it needed to change the way it operates in Greece if it were to continue to invest in the country.
In November 2011, the world's largest operator by revenue announced a writedown of £450 million on its Greek business, citing lower cash flow and an increase in discount rates. This came after a £800 million writedown in the year-earlier period.
