Telefonica, Drillisch Sign Deal to Seal E-Plus Merger

Telefonica SA, the Spanish phone company that’s merging its German business with Royal KPN NV’s E-Plus unit, agreed to sell network capacity to local rival Drillisch AG, bringing it closer to winning antitrust approval.

Drillisch, a small carrier that doesn’t own a network, will buy 20 percent of the capacity of all mobile networks that will be controlled by Telefonica Deutschland Holding AG after the E-Plus deal over five years, Telefonica said today. The agreement will be effective only if the European Commission clears the E-Plus takeover, with a decision expected next month, it said.