S&C Represents e& in First In-Depth Conditional Merger Clearance Under EU Foreign Subsidies Regulation

e&, the UAE's largest telecoms operator, earned the European Commission's clearance under the Foreign Subsidies Regulation (FSR) to acquire a controlling stake in PPF Telecom Group's assets in Bulgaria, Hungary, Serbia and Slovakia. This landmark case is the first in-depth merger investigation under the FSR and the first time the European Commission has accepted remedies in an FSR case.

PPF Telecom serves more than 10 million customers and enjoys leading positions in its markets. This transaction is consistent with e&'s strategic ambition to accelerate international growth and diversify into new geographies. The upfront consideration for the acquisition is €2.15 billion in exchange for a 50 percent-plus-one share economic stake. The transaction also includes earn-out and claw back payments depending on achievement of certain financial targets. In addition, PPF will have a put option exercisable five years after closing and e& would have a reciprocal call option.

S&C has advised longtime client e& in other high-profile matters, including its acquisition of a 9.8% stake in Vodafone as part of its larger strategic partnership with the multinational telecommunications company.

The S&C team advising e& includes John Horsfield-Bradbury, Umberto Hassan and Zainab Cheema. Juan Rodriguez, Marielena Doeding and Daniela Hohwieler are advising on antitrust, FDI and foreign subsidies regulation matters.