The potential targets are the local subsidiary of US UPC group (LGI) and cable TV service provider AKTA of US private equity firm AIG.
“Both Orange and Vodafone can make acquisitions, although Vodafone seems theoretically closer to it. That Vodafone has been actively buying in other markets and has cash available does not mean Orange cannot compete it in a potential acquisition on the local market,” says Valentin Mircea, former vice-president of the Competition Council turned senior partner of law firm Mircea si Asociatii.
Only Romanian-owned RCS&RDS and the Cosmote-Romtelecom group can now offer the entire fixed, mobile and TV service packages on a market estimated at EUR3.3 billion.
“Market success has more and more to do with the ability to provide integrated services and data services are becoming increasingly more important,” Mircea added.
“The wave of consolidations in Europe is obviously coming towards Romania and in the next 12 months the hierarchy of the market will be set for the next five years,” a manager on the local communications market told ZF.
“Large players no longer have the time or any reason to wait, this consolidation will prepare them to make the most of the recovery of the economy.”
(English version by Loredana Fratila-Cristescu)