Carphonewarehouse moves closer to Tiscali purchase

Posted: 30 June 2009

The acquisition of Tiscali UK by the Carphonewarehouse has taken one step closer to completion as it emerged the European Commission has approved the move.

It was noted European Union merger regulations show that by purchasing the broadband services provider, the group - which already owns TalkTalk - would not threaten to monopolise the sector.

Currently, Tiscali provides consumers across the nation with fixed-line telephone, internet and digital TV services to both business and domestic users, whereas the Carphonewarehouse is primarily involved in the retail sector.

It was found the firm would become a much bigger player in the industry as a result of the acquisition but "would not significantly impede effective competition in the European economic area or any substantial part of it".

The commission also suggested the merged company could become "one of the main competitors to the incumbent operator BT".

Earlier this year, TalkTalk assured its users that the acquisition would not have a negative impact on their subscriptions.

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