Ireland’s Competition and Consumer Protection Commission (CCPC) has approved the $1 billion sale of Spanish tower company Cellnex’s (OTC: CLNXF) towers to Phoenix Tower International (PTI), subject to legally binding commitments, according to Data Center Dynamics. This acquisition involves PTI acquiring approximately 1,900 towers from Cellnex, Inside Towers reported. Cellnex has been operating in Ireland since 2019, following its acquisition of tower operator Cignal.
The CCPC identified potential competition concerns during its investigation, particularly regarding “the supply of hosting services on macro passive network infrastructure sites in the State.” In response, Phoenix has agreed to several binding commitments to address these concerns.
One significant issue highlighted was the potential increase in market concentration resulting from the reduced competition between Phoenix and Cellnex, which could lead to higher prices and/or lower service quality for customers and end users of mobile networks.
As part of the agreement, there is a requirement for the divestment of sites in areas where the transaction would reduce the number of competitors offering hosting services on macro passive infrastructure from three to two or from two to one.
Additionally, the agreement mandates the divestiture of new sites to be developed within the same areas, where such sites are part of an existing agreement between the merging parties and a mobile network operator.
The CCPC stated that these commitments will enable competitors to enter or expand within the market, thereby replacing any lost competition due to the merger.
By John Celentano, Inside Towers Business Editor
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