Digi, the Romanian telecom operator, has announced a significant investment of €500 million in Portugal, following its acquisition of Nowo. This move is expected to bring substantial changes to the Portuguese telecommunications landscape.
Key Takeaways
- Digi invests €500 million in Portugal.
- Acquisition of Nowo finalized on August 1, 2024.
- Expected to employ over 600 workers.
- Telecom prices in Portugal anticipated to drop.
- Investment includes significant infrastructure development.
Acquisition Details
On August 1, 2024, Digi finalized the acquisition of Nowo for €150 million. This deal marks a significant milestone for Digi, allowing it to expand rapidly in the Portuguese market. The acquisition was completed after Vodafone’s failed attempt to purchase Nowo due to regulatory concerns.
Market Impact
The entry of Digi into the Portuguese market is expected to lead to a reduction in telecom prices. According to the Autoridade da Concorrência (AdC), the average prices for telecom services are projected to decrease by 2.6% for service packages and 7.4% for mobile services. This price drop is anticipated to benefit consumers significantly.
Employment and Infrastructure
Digi’s operation in Portugal will be supported by over 600 workers. The company has also announced a substantial investment in infrastructure, amounting to €500 million. This investment aims to demonstrate Digi’s long-term commitment to the Portuguese market and its intention to develop its activities in the country.
Strategic Significance
Emil Grecu, CEO of Digi Portugal, described the acquisition as an exciting milestone in the company’s growth and innovation journey. He expressed confidence that Digi would offer Portuguese consumers a wide range of high-quality telecom services at fair prices. The company also highlighted its existing customer base in Portugal, which includes 270,000 mobile phone customers and approximately 130,000 fixed telecom customers.
Regulatory Approval
The agreement with Lorca, Nowo’s previous owner, is subject to customary adjustments and certain contingent events, as well as approval from the AdC. The regulatory body’s approval is crucial for the successful completion of the acquisition.
Conclusion
Digi’s €500 million investment in Portugal is poised to bring significant changes to the country’s telecom market. With a focus on infrastructure development and competitive pricing, Digi aims to establish a strong presence in Portugal and offer high-quality services to its consumers.
