Eltel and Umoe to merge telecom businesses in Norway
The plan is to complete the merger during 2014. After receiving a positive answer from the Norwegian Competition Authority at the beginning of this month, Eltel Group and Umoe, owner of Sonnico Tele AS, have reached an agreement to merge their respective telecom businesses within Fixed and Mobile in Norway on February 14.
The businesses of Sonnico Tele and Eltel's telecom businesses in Norway will be transferred into a jointly owned company to be named Eltel Sonnico AS. The new company will have approximately 1,200 employees and a turnover of about 1,500 million Norwegian kroner.
The formation of Eltel Sonnico AS will give the Norwegian telecom industry a strong and agile service provider with a wider resource base and nationwide coverage. The company will have a strengthened capacity to integrate forward and backward in line with the needs of the market.
The detailed planning of the merger and integration has started. The merger transaction is expected to be completed by mid-March. The company, Eltel Sonnico AS, will be registered and the board and management will be appointed accordingly. Anders Hauglie-Hanssen will be appointed as the CEO of Eltel Sonnico AS and Thor-Egel Brathen as the deputy CEO of the new company.
The transfer of all employees, resources and systems will take place in 2014 and will be completed at latest in December 2014. The merger will not have an impact on Umoe or Eltel's other businesses with exception of telecom businesses in Norway. ■