KKR Faces EU Probe Over Misleading Acquisition Information, NetCo Deal Under Review

The European Commission has launched a formal investigation into KKR's acquisition of NetCo, a significant component of Telecom Italia's broadband infrastructure. The Commission aims to verify the accuracy of information KKR provided about long-term agreements with various providers. KKR has been notified of the investigation, which is distinct from the previous unconditional approval of the deal under the EU Merger Regulation.

Title: European Commission Launches Formal Investigation into KKR's Acquisition of NetCo

The European Commission has opened a formal investigation to determine whether KKR & Co. Inc. (KKR) provided incorrect or misleading information during the merger investigation of its acquisition of NetCo, a significant component of Telecom Italia's broadband infrastructure. The investigation is separate from the previous unconditional approval of the deal under the EU Merger Regulation [1].

The European Commission (EC) is assessing whether KKR misrepresented the long-term agreements that FiberCop, a joint venture between Telecom Italia and KKR, had with various providers. These agreements were deemed crucial by the EC in concluding that the merged entity would not worsen conditions for rivals [2].

KKR has been informed of the investigation and has stated that it will work with the EC to address any concerns. The company noted that it provided specific and accurate information as part of the transaction clearance and that FiberCop continues to adhere to customer commitments and economic regulation governed by AGCOM, the independent Italian communications regulatory authority [2].

This investigation comes amidst a broader trend of revisiting previously closed mergers and acquisitions. The Cloud Infrastructure Service Providers in Europe (CISPE) has also filed a formal appeal before the European General Court challenging the EC's decision to approve Broadcom’s acquisition of VMware [2].

The investigation into KKR's acquisition of NetCo is expected to have implications for both the broadband sector and the broader telecom industry. The European Commission's strict adherence to merger control rules underscores the importance of accurate and transparent information in the regulatory process [2].

References
[1] https://ec.europa.eu/commission/presscorner/detail/en/ip_25_1893
[2] https://www.telecomtv.com/content/access-evolution/what-s-up-with-kkr-telecom-italia-fttp-tech-sector-metronet-53514/