e& proposes concessions to quell EU concerns: Telecoms giant e& has proposed concessions in a bid to ease EU concerns over allegedly receiving state subsidies to acquire Czech PPF Telecom Group’s assets in Eastern Europe, Reuters reports, citing a statement from the EU’s competition regulator.

The commission has set a new deadline to clear or block the bid on 4 December, deferring the initial deadline for the decision from 15 October.

REMEMBER- The European Commission began a review of e&’s bid to acquire PPF’s assets in June. The move marked the commission’s first anti-subsidy probe of a foreign buyer, claiming that the telco received state support that impacted its position to acquire the company and hampers market competition.

What state support? The EC is looking at a guarantee and a loan from state banks to help fund the transaction.

BACKGROUND- e& had agreed to acquire a 50% stake plus one share in PPF Group’s telecoms units in Bulgaria, Hungary, Serbia, and Slovakia for EUR 2.5 bn (AED 9.9 bn) last August. Bulgaria’s Competition Protection Commission greenlit e&’s acquisition of Bulgarian mobile operator Yettel Bulgaria and telecoms infrastructure provider Cetin Bulgaria from PPF Group in February as part of the transaction, with CEO Hatem Dowidar saying in February he expected to close the acquisition a few weeks later, following the receipt of final regulatory approvals.

This comes amid a rising wave of protectionism in the EU that has seen several overseas transactions from the region blocked by governments. The UK made legislative changes to block a takeover by Abu Dhabi-based investors of newspapers the Telegraph and the Spectator, citing preserving editorial independence as a major concern. Meanwhile, the Spanish government has been trying to edge out Saudi telecoms operator Stc as a major shareholder, after it became mobile network operator Telefonica’s largest shareholder.

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