Romanian Govt., the last obstacle in deal between Deutsche Telekom and Orange

German group Deutsche Telekom has reportedly agreed to sell to French group Orange the shares it holds in Telekom Romania, the subsidiary operating its fixed-line business in Romania (voice, internet and TV).

However, the two groups also need the Romanian Government’s approval for this transaction, as the Communications Ministry holds a 46% minority stake in Telekom Romania (the former state telephony company Romtelecom), Hotnews.ro reported.

The deal between Deutsche Telekom and Orange targets the majority 54% stake, for which the Romanian state has the right of first refusal. The Romanian Government hasn’t yet reached a decision.

Communications minister Alexandru Petrescu proposed to prime minister Viorica Dancila, on July 22, to create an inter-ministry group that would include representatives of the communications, justice and finance ministries and representatives of the Competition Council, Romanian Intelligence Service (SRI) and Foreign Intelligence Service (SIE), which would analyze the Romanian state’s options. A first meeting of these representatives will take place on Wednesday, September 25, according to official sources quoted by Hotnews.ro.

The Romanian state has three options: to keep its stake in Telekom Romania, to buy Deutsche Telekom’s stake or to sell together with the German group. The Government needs to adopt a decision on its strategy before the deal between Deutsche Telekom and Orange can move on, sources in the telecom market told Hotnews.ro.

Orange is the leader of the mobile communications market in Romania and is looking to buy Deutsche Telekom’s fixed operations, which would complement its current offer.

The German group is also looking to find a buyer for its mobile business in Romania (Telekom Romania Mobile Communications).

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