Compass Lexecon Advises Tele2 on Telia and Bonnier Broadcasting Merger

In November 2019, the European Commission (“EC”) approved the €868.6 million ($957 million) acquisition of Bonnier Broadcasting by Telia, subject to conditions, after a Phase II investigation.

The investigation focused primarily on the parties’ activities in the wholesale supply and retail distribution of TV channels in Finland and Sweden, where the EC feared a reduction of competition as a result of the transaction. Compass Lexecon was hired by Tele2, a rival operator, to analyze the potential anticompetitive effects of the transaction. We submitted a report with quantitative analyses showing that the merged entity would have the ability and incentive to implement a strategy of (partial) foreclosure in various segments of the market. The EC’s approval of the transaction was subject to a commitments package that addressed these foreclosure concerns.

The Compass Lexecon team included Miguel de la Mano, Enrique Andreu, Thilo Klein, Guillaume Duquesne, Mats Holmstrom and Shiva Shekhar.