The combination of the Spanish businesses of Orange and Masmovil Ibercom, through a $19 billion offer, risks being blocked by European Union regulators unless the companies address a number of competition issues.
The European Commission is set to release a list of potential reasons to oppose the deal between Spain’s second-largest and fourth-largest mobile operator, according to sources familiar with the matter cited by Bloomberg.
The document, common in complex mergers, will also indicate possible solutions. In the telecommunications sector, these solutions could include selling assets or taking steps to make the new network interoperable with competitors.
Currently, the commission has set a deadline of September 4 to reach a final decision, although this deadline could slip.