Digi acquires Portugal’s Nowo
August 5, 2024
From Branislav Pekic in Rome
Romanian telco Digi has secured a deal to purchase Portuguese operator Nowo from Spanish firm Lorca JVCO (a joint venture between Orange and MásMóvil) for €150 million.
The acquisition, subject to approval by the Competition Authority and the National Communications Authority (Anacom), marks a significant step for Digi as it expands its operations in Portugal.
Nowo, the fourth-largest telecom provider in Portugal, boasts around 270,000 mobile and 130,000 fixed-line customers, as well as spectrum licences in the 1800 MHz, 2600 MHz, and 3600 MHz bands. Additionally, Nowo serves 900,000 homes with a hybrid cable/fibre optic network and 150,000 homes with a fibre-only network.
Digi plans to invest over €500 million in Portugal following its acquisition of Nowo to offer a full range of telecommunications services to Portuguese consumers.
The deal is seen as a strategic move for Digi, addressing several challenges it faces in the Portuguese market, including access to content and building a customer base.
Recent media reports claimed that as of July, Digi had not yet signed any contracts for the distribution of the main Portuguese TV channels, namely RTP, SIC, and TVI. Additionally, Digi filed complaints to regulators against Portuguese media group Media Capital for allegedly anti-competitive practices in TV content negotiations.
The deal also provides Digi with an immediate customer base, albeit small as Nowo’s market share amounts to less than 5 per cent.
The deal follows the rejection of a previous bid by Vodafone Portugal for Nowo due to competition concerns. The regulator said it could create “significant” barriers to competition in some areas, leading to price increases. Besides Vodafone Portugal, Portuguese media group Media Capital had also expressed interest in Nowo.
Digi will need to demonstrate to regulators that its acquisition will benefit consumers by increasing competition and lowering prices.
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