Mergers and Acquisitions in the telecoms sector
The reasons to get good legal advice
14 December 2018
How can you maximise deal benefits and control risks in a sector undergoing radical transformation?
From consolidations in mature markets to cross-border expansions in emerging markets, rapid changes in the telecommunications sector are driving transactions around the world. Increasing regulatory complexity, fierce competition and threats from non-telcos disrupting established business models are opening up new opportunities while creating new risks.
Consolidation in mature markets
In concentrated markets, how can you share information with your competitors without giving away too much or breaching competition laws? How will you deal with existing infrastructure-sharing and other strategic arrangements that are subject to confidentiality restrictions and third-party consents? How will you tackle difficult practical questions that can frustrate the realisation of synergies, such as consolidating customer relationships?
Activities across geographies
Transactions in emerging markets require an understanding of economic dynamics, cross-cultural impact and legal environments that differ profoundly from those encountered in developed markets.
Separation and integration have become key deal features
Most companies pool their resources and use centralised models to support their businesses, in an effort to streamline operations and leverage group spend to obtain price reductions. These shared service models can give rise to complex separation issues and ongoing shared services requirements. It is not all bad news, though: the shared resource structure can be used effectively to structure the transaction perimeter and acquire a more targeted business.