CCPC requires binding commitments from Phoenix to acquire Cellnex
February 6, 2025
The Competition and Consumer Protection Commission (CCPC) has cleared, subject to legally binding commitments, the proposed acquisition of Cellnex Ireland Limited and Cignal Infrastructure Limited (together, Cellnex) by Phoenix Tower International Holdco, LLC (Phoenix) (M/24/018).
The proposed acquisition was originally notified to the CCPC in March 2024. Following an extended preliminary investigation, the CCPC determined in July 2024 that a full investigation was required to establish if the proposed transaction would lead to a substantial lessening of competition in the State.
In the course of its investigation, the CCPC identified potential competition concerns relating to the supply of hosting services on macro passive network infrastructure sites in the State. Passive infrastructure, which includes towers or masts, is crucial for mobile network operators and other electronic communications service providers. Mobile operators fix active network equipment to it, including antennae and dishes. The CCPC’s potential concerns included an increase in market concentration through the loss of close competition between Phoenix and Cellnex resulting in higher prices and/or lower service quality for their customers and, ultimately, end users of mobile networks. To address these potential concerns, Phoenix made a number of binding commitments to the CCPC.
These commitments include the divestment of sites in areas where the effect of the transaction would be to reduce the number of competitors offering hosting services on macro passive infrastructure from 3 to 2 or from 2 to 1. The commitments also include a provision to divest new sites to be developed within the same areas, where the new sites are part of an existing agreement between the merging parties and a mobile network operator. The commitments will allow a competitor to enter or expand in the market, and will replace competition lost due to the merger.
Following detailed examination, and having taken into account the commitments given by Phoenix, the CCPC has determined that the proposed acquisition will not substantially lessen competition and, as a result, can be put into effect. The CCPC will publish its full determination on its website no later than 60 working days after the date of the determination and after allowing the parties the opportunity to request that confidential information be removed from the published version.
To ensure compliance with these commitments, an independent monitoring trustee, who will have all the rights and powers necessary to monitor compliance with the commitments, will be appointed.
Information about the merger notification can be found at M/24/018 – Phoenix/Cellnex.
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