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Tuesday, September 21, 2021

Cellnex Nears $12 Billion Acquisition of Europe’s Hutchison Towers

Cellnex on Thursday has officially completed its deal to acquire 24,600 telecom towers across Europe from Hong Kong’s CK Hutchison Holdings for around 10 billion euros ($11.8 billion), becoming the Spanish telecommunications operator’s biggest purchase to date.

Cellnex on Thursday has officially completed its deal to acquire 24,600 telecom towers across Europe from Hong Kong’s CK Hutchison Holdings for around 10 billion euros ($11.8 billion), becoming the Spanish telecommunications operator’s biggest purchase to date.

According to the deal’s filings, the Barcelona-based firm would pay nearly 8.6 billion euros in cash and the rest in new Cellnex shares, giving Hutchinson around 5% of Celnex’s enlarged share capital.

The deal, which would be done in six separate transactions, would make Cellnex acquire more assets in Italy, Britain and Ireland. It would also help the firm enter the markets of Sweden, Austria and Denmark.

The agreement between the two companies is part of Cellnex’s strategy to bolster its presence across Europe.

“The high density and capillarity of Cellnex’s network of sites, now in 12 European markets and crossing the threshold of 100,000 telecom sites, further highlights the differentiated added value of our company as a natural partner for all mobile operators in Europe to complement their capabilities in rolling out 4G and accelerating the 5G deployment,” said Tobias Martinez, the chief executive officer of Cellnex.

Cellnex also agreed to invest about 1.4 billion euros for a capital expenditure program, vowing to deploy 5,250 new sites by 2030.

After the completion of the acquisition deal, Cellnex is expected to have about 10,000 towers and telecommunications sites in its portfolio.

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