News: Portuguese broadband operators Zon Multimedia and Optimus secured approval from their boards of directors for a proposed merger between the two. The merger, proposed in December 2012, will result in the Optimus being incorporated into Zon and the global transfer of former's assets and liabilities to the latter. The merged entity will be called Zon Optimus and will have an estimated 26% share of the national telecoms market, in addition to annual sales of more than EUR1.6bn (US$2.1bn). The merged entity will also have EBITDA of EUR540mn (US$719.9mn).
BMI View: The merger will result in the second largest operator in the Portugal telecoms market - providing a strong challenge to Portugal Telecom , which is offers wireline and mobile services. Zon Multimedia is the largest pay-TV operator, with a market share of more than 20% and 30% in the fixed-line and fixed broadband markets.