Telenet and Fluvius Receive European Commission Approval for Fibre Joint Venture

Telenet and Fluvius Receive European Commission Approval for Fibre Joint Venture

Telenet and Fluvius have cleared a major hurdle in their mission to construct an advanced network in Flanders and parts of Brussels. On Wednesday, the European Commission (EC) granted formal approval for their planned fibre-to-the-home (FTTH) joint venture.

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This development allows the establishment of a new infrastructure company, tentatively named NetCo, which is set to launch in early July 2023. According to Telenet, Micha Berger, currently serving as Special Projects Lead at Telenet, will assume the role of CEO at NetCo upon the transaction’s closure.

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Telenet and Fluvius Partnership

The partnership between Telenet and Fluvius was first announced on July 19, 2022, with the shared goal of constructing a state-of-the-art network. As part of this joint effort, the two companies planned to establish NetCo, a dedicated infrastructure entity tasked with building the network of the future in Flanders and select areas of Brussels.

European Commission approves joint venture

To proceed with their plans, Telenet and Fluvius required the prior approval of the European Commission, a customary requirement for transactions of this nature within the European Union. Telenet and Fluvius have received the formal clearance from the European Commission, giving them the green light to proceed.

Also Read: Telenet Takes Over Eltrona in Luxembourg

NetCo’s shareholding and funding

The transaction is expected to close on July 1, 2023. Under the agreement, Telenet will hold a 66.8 percent stake in NetCo, with Fluvius owning the remaining 33.2 percent. NetCo will be fully funded, eliminating the need for external financing.