T-Mobile Netherlands concluded negotiations today with France Telecom on the acquisition of Orange Netherlands. The contract sets a purchase price of EUR 1.33 billion on a debt/cash free basis.
The joining of forces of two of the major Netherlands carriers is thus complete. The number of T-Mobile customers in Holland now adds up to a total of 4.8 million (of which 2.8 million customers with T-Mobile and 2.0 million with Orange Netherlands). This represents about 28% of the market share for the country.
Deutsche Telecom hopes to strengthen its positions on the competitive Dutch market with the acquisition of the fourth largest mobile communications operator in the Netherlands. Prior to the purchase, T-mobile was the third biggest provider nationwide but now it enjoys a significant boost in the race with KPN and Vodafone Netherlands, which are the other two operators with networks of their own.
The transaction is to be finalized on October 1, 2007 and obviously T-Mobile will then have to put their backs into integrating the two companies and making all the necessary steps towards sustainability.