Report
Allan C. Nichols
EUR 101.80 For Business Accounts Only

Tele2 Agrees to Acquire Swedish Cable Operator Com Hem; Strategically Shrewd, but Expensive

Tele2 announced on Jan. 10 that it will acquire Com Hem, the largest cable TV operator in Sweden. Strategically, we think this is a great acquisition. We have long talked about the convergence of fixed-line and wireless telecom with broadband and pay TV in Europe. This deal creates a strong competitor to incumbent telecom operator Telia. The combined Tele2 will be a solid number two in fixed-line and wireless telephony and broadband and number one in pay TV. While we are maintaining our no-moat ...
Underlying
Tele2 AB Class B

Tele2 is engaged as a telecom operator. Co. provides mobile communication services, fixed broadband and telephony, data network services and content services. The mobile service comprises various types of subscriptions for residential and business customers as well as prepaid cards. Fixed broadband includes direct access, which is its own services based on access via copper cable and other forms of access, such as fibre networks, wireless broadband and metropolitan area networks. Fixed telephony includes resold products within fixed telephony. The product portfolio within resold fixed telephony consists of prefix telephony, pre-selection (dial the number without a prefix) and subscriptions.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Allan C. Nichols

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