Cellcom and Golan Telecom filed a merger request with the Ministry of Communications on Monday. Last week, the pair filed a merger request with the Antitrust Authority.
Both government bodies must approve the merger. The companies are now expected to present professional financial and legal opinions to support their case. Cellcom and Golan have one year to complete the deal until the end of 2016 and it appears the inquiry into the deal will not proceed with haste because of itspotential political ripples.
The political considerations are unlikely to be handled by the Antitrust Authority, which will examine the merger from the point of view ofits effect on competition.
By contrast,the Ministry of Communications’ decision can be expected tobe based on political considerations. This iswhat emerges fromPrime Minister and Minister of CommunicationsBenjamin Netanyahu’s statement on hisdoubts aboutthe merger, which was coordinated with Minister of FinanceMoshe Kahlon’s opposition to it a political movethat is not based onprofessional analysis of the mobile telephonymarket two years after Kahlon'smajor reform when he was minister of communications.
According to the Communications Law,any transfer of ownership above 5% of a license holder must be approved. Last week, the Ministry of Communications announced its intention offiningGolanfor dismantling its network without approval.
Published by Globes [online], Israel business news - www.globes-online.com - on December 22, 2015
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