Deutsche Telekom buys remainder of T-Mobile Czech unit

The German telecommunications giant Deutsche Telekom said Monday that it was acquiring all remaining shares of T-Mobile Czech Republic in a deal worth 800 million euros ($1.1 billion). T-Mobile Czech Republic is the largest mobile carrier in the country with 5.8 million customers at the end of 2013.

Deutsche Telekom has been reviewing its Eastern Europe strategy, particularly in the Czech Republic, because the market is characterized by strong competition and strict regulation.

"The acquisition of the remaining shares is a natural step towards optimizing our portfolio and supports our transformation into the leading integrated Pan-European operator," said Claudia Nemat, board member for Europe and Technology at Deutsche Telekom.

"The Czech Republic is an important market for Deutsche Telekom due to its size and structure. With the ongoing integration of T-SystemsCzech Republic and the planned combination with the Czech operations of GTS Group, T-Mobile Czech Republic is on a clear strategic path to enhance its fixed-line capabilities and foster its market position in B2B,' she added.

Deutsche Telekom added that the acquisition gives it simplification of T-Mobile Czech Republic's capital and governance structure and offers financial benefits. The subsidiary is already fully consolidated by Deutsche Telekom and as such will have no impact on group earnings. The acquisition is not subject to regulatory approvals.

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