The European Commission has approved the takeover of Eircell by Vodafone despite objections from eIsland, the consortium led by Mr Denis O'Brien. EIsland, considering a #2.4 billion plus takeover bid for Eircom's fixed line business, objected to a clause in the agreement which prevented Eircom from re-entering the mobile market for three years. The restriction also applied to any third parties who acquired the fixed line business of Eircom and would thus apply to eIsland.
Mr O'Brien, the former chairman of Esat Telecom, is also considering bidding for a third generation mobile licence when the competition is run later this year.
An eIsland spokeswoman said last night that it was waiting to examine the non-complete clause in the official documentation on the terms of the Vodafone/ Eircell deal. But she insisted the issue was one for the telecoms regulator and not for the companies themselves to decide.
In a decision announced in Brussels yesterday, the Commission concluded that, although the acquisition of Eircell would add to Vodafone's European footprint, the deal did not threaten fair competition.
The Commission pointed out that Eircell already faced competition in Ireland from Esat Digifone and would soon have a second competitor in Meteor. Because Eircell is not present in Britain, the deal will not affect Vodafone's share of the British market.
