Merger: Commission approves proposed joint acquisition of Casema and Multikabel by Cinven and Warburg Pincus

The European Commission has cleared under the EU Merger Regulation the proposed acquisition by Cinven Limited (UK) and Warburg Pincus International LLC (USA) of joint control over the Dutch cable operators Casema Holding B.V. and Multikabel B.V. The Commission concluded that the proposed transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.

Cinven and Warburg Pincus are both private equity companies with interests in a range of economic sectors. Casema and Multikabel are two Dutch cable operators providing radio and television, Internet access and fixed telephony services.

The Commission has found that Casema and Multikabel have only marginal overlapping activities in the markets for broadband Internet access, retail distribution of fixed telephony services, leased lines and in the emerging market for multiple play offers that are not liable to raise any competition concerns.

Casema’s and Multikabel’s main activity is to acquire from broadcasters distribution rights over their radio and TV channels (the wholesale market) and to distribute these channels via their cable networks to viewers (the downstream market). The Commission’s examination of the wholesale market showed that given Multikabel’s comparatively small subscriber base, the proposed transaction would not result in a substantial change of the market structure.

The examination of the relevant retail market did not give rise to competition concerns as Casema’s and Multikabel’s respective distribution areas do not overlap.

The Commission therefore concluded that the proposed transaction would not risk impeding effective competition in any of those markets.
Further information on the case will be available at:

http://ec.europa.eu/competition/mergers/cases/index/m86.html#m_4338