AZTN Initiated the Procedure for Assessing the Concentration of Optima/H1

The Competition Protection Agency (AZTN) has initiated the procedure for assessing the permissibility of the concentration of Optima Telekom, which operates within the HT Group and H1 Telekom, the Agency reported on Monday.

The complete application for the concentration was received by the Agency on October 14, after which it conducted a market test in the form of a public call to all interested parties for the submission of opinions and comments on the implementation of this concentration, during which it received a number of statements.

Based on the evidence submitted with the application and other data and knowledge at its disposal, the Agency assessed that the implementation of this concentration could have a significant effect on market competition in the relevant market for the provision of electronic communication services in fixed networks in the territory of the Republic of Croatia, at both wholesale and retail levels.

Therefore, for the AZTN’s decision-making, it is necessary to conduct a thorough legal and economic analysis, and consequently, the Agency has initiated the procedure for assessing the concentration at the second level, as stated in the announcement.

Optima Telekom (OT), which has been operating within the group since 2014, signed an agreement at the end of July this year for the merger with H1, based on which H1 will merge into Optima by transferring all assets and all rights and obligations, without conducting a liquidation procedure of the merged company.

All shareholders of H1 will be obliged to transfer shares of Optima in the appropriate ratio. The effect of the merger is expected to occur on January 1 of the following year, upon obtaining all necessary approvals and consents.

“The purpose of the merger of H1 into Optima is to achieve positive synergies between the companies and to increase the value of Optima for existing shareholders and new (former shareholders of H1),” Optima stated in its announcement at that time, adding that the merger and the realization of the anticipated synergies will lead to increased business efficiency and reduced costs, “which will result in an increase in the value of Optima as the third reputable operator in the fixed telephony market.”