T-Mobile taking over Dutch arm of Tele2 mobile provider

FeaturesAssociated Press

The Dutch arm of T-Mobile says it is taking over telecom and internet provider Tele2's operations in the Netherlands, in a move T-Mobile says is aimed at competing with local heavyweights KPN and VodafoneZiggo.

T-Mobile will pay 190 million euros ($224 million) and give Tele2 a 25-percent stake in the new combined company. T-Mobile parent company Deutsche Telekom will own 75 percent. The deal announced Friday is subject to approval by competition authorities.

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Deutsche Telekom says the combined company will have revenues of more than 2 billion euros and about 4.3 million mobile subscribers.

Soren Abildgaard, CEO of the Dutch T-Mobile, says the new company "will be able to compete against the duopoly much more efficiently and give all Dutch customers a fair choice."