Carphone Warehouse-Tiscali Takeover Gets EC’s Green Light

Carphone Warehouse founder Charles Dunstone

It’s a thumbs up from the European Commission: the proposed merger of Tiscali’s UK broadband business and Carphone Warehouse can now take place as planned.

The EC’s Competition Commission ruled Tuesday that the deal “would not significantly impede effective competition”. The commission concedes that the two companies do overlap in retail and wholesale broadband and fixed-line phone lines, which could be a concern for broadband market leader BT (NYSE: BT). But it concludes that the merger would have no real competition effects on any of those markets, and it expects the new entity itself to face strong competition, not least from BT, cable rival Virgin Media (NSDQ: VMED) and emerging mobile network operators.

Tiscali will become part of Carphone’s de-merged broadband business, which is in the process of separating from its retail division — both sides of the business are already run separately but they will become separately listed on the London Stock Exchange in July 2010. Release.

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