Category Archives: M&A

Telco M&A: bigger, faster, more expensive

The telecoms sector is set to see more deals over the next year with larger values, according to a senior banking source.

Telecoms companies just can’t keep away from each other. EE and BT, O2 and Three…with high costs and low returns, the sector has been ripe for consolidation.

My source tells me that he expects to see bigger M&A deals in the UK and Europe, both in-market and cross-border, within the same products and across different product lines.

As long as the macro environment behaves itself, that is.

Troubles in the capital markets could hit the sector hard, with corporates quick to cut down their telecoms costs in the event of a financial downturn.

This year has seen ramped-up regulatory scrutiny from antitrust watchdogs in the UK and EU on telco mergers (like the two deals mentioned earlier) and this is likely to increase, he adds.