EU antitrust to meet Telecom Italia rivals next week over grid deal

European Union antitrust regulators will meet rivals of Telecom Italia (TIM) (TLIT.MI), opens new tab next week to discuss the proposed acquisition of the former phone monopoly’s domestic fixed-line network by U.S. fund KKR (KKR.N), opens new tab, two sources said on Wednesday.

The EU Commission declined to comment.

TIM rivals had until April 30 to answer EU questionnaires, which flagged that the EU had concerns about the viability of wholesale competition in Italy, sources had previously told Reuters.

The EU asked rivals whether the deal, which is worth up to 22 billion euros ($23.6 billion) and includes a master service agreement between TIM’s remaining service company and the future wholesale network operator, could hamper competition.

Such regulatory worries could lead to a lengthy investigation of the deal and put pressure on KKR to offer significant remedies.

The sale is part of a government-backed plan aimed at cutting debt and reviving TIM. TIM aims to finalise the deal around the middle of the year and any delay could complicate the company’s revamp. Reuters