Matt Atlas

CEZ In Talks On Cooperation With Vodafone CR

ČEZ is holding talks to acquire the Czech branch of Vodafone. It is being decided which parts of Vodafone’s business would make sense for CEZ and how much. Vodafone confirmed the negotiations on “cooperation” According to reports, the decision should be made by the summer.

Last year, the energy company announced its plans to build the fourth largest operator in the country and has long been investing in Internet optical networks. However, it did not succeed in the tender for frequencies for 5G networks last year. Vodafone could be the solution to this effort for ČEZ.

“The conditions of the CTU favored the existing three operators. Therefore, ČEZ evaluated that it cannot come to the market as a new player. If they bought one, it would be easier, “says a source from energy circles, who did not want to be named.

Vodafone still owns the global corporation of the same name. However, ČEZ would not have to buy Vodafone directly. It could be a type of cooperation.

“We have confirmed that negotiations on various possibilities of the strategic alliance have been underway with ČEZ since the period of the 5G auction.

The operator currently has around four million customers and earned 1.46 billion crowns in the fiscal year ending last March. Vodafone also includes UPC’s largest domestic cable network.

In the case of any cooperation agreement, it would still be one of the largest deals on the Czech telecommunications market since 2013, when the PPF Group bought the O2 operator.

If ČEZ finally bought Vodafone, the price could be in the order of tens of billions of crowns, according to estimates. However, the price has not been determined yet, and both parties are negotiating its amount. The type of strategic cooperation, purchase, and price should be decided by the summer of this year.