Brussels investigates KKR over €22bn Italian telecoms deal
Commission probes whether US private equity group provided ‘incorrect or misleading information’ over impact of buyout
Brussels has launched an investigation into KKR over whether it provided “incorrect or misleading information” about the market impact of its €22bn deal to acquire Telecom Italia’s fixed-line network last year.
The European Commission, which oversees antitrust rules in the bloc, said on Thursday that the probe would focus on information provided by the US private equity group relating to the deal’s impact on “wholesale broadband access services in Italy”.
The Commission routinely gathers information before deals are completed to assess whether they would have a harmful effect on competition within the region. Under the bloc’s rules, merging parties must not provide incorrect, incomplete or misleading information to the Commission.
KKR struck the deal to buy NetCo, which controls FiberCop, the company housing the fixed-line networks business previously carved out from Telecom Italia, after triumphing from a years-long battle with the company’s largest shareholder, Vivendi.
The plan to separate Telecom Italia’s fixed line business had been opposed by French conglomerate Vivendi but Telecom Italia chief executive Pietro Labriola said it was the only chance to turn around the heavily indebted group amid increased competition across the sector, which was once a monopoly in Italy.
Brussels had initially decided that the KKR deal would not harm or eliminate other businesses’ access to “passive services” because of agreements that FiberCop had entered into with those companies.
The Commission, which has powers to fine companies that intentionally or negligently supply incorrect or misleading information, said on Thursday that its probe would “assess whether KKR provided incorrect or misleading information about these agreements”.
The deal, which was the largest private equity takeover in Europe in 2024, has since soured with FiberCop’s chief executive abruptly exiting in January after disagreements with KKR over a potential earnings hole at the business.
KKR said it had “worked with the European Commission in good faith and provided specific and accurate information” on the deal, adding that it would “fully engage” with Brussels to address any concerns.