Canal Digital-Stofa purchase abandoned
09.24 Europe/London, July 27, 2011 By Julian Clover

Plans for Canal Digital to acquire the Ratos-owned cable TV operation Stofa have been dropped after it became clear the chances of approval from the Danish competition authorities was low.

The DKK100 million (€13.42 million) deal was announced in January, with the competition process getting underway two months later.

“It’s obviously disappointing that we have not reached the goal in discussions with the Competition Authority and had to stop the acquisition process, said Ratos CEO Arne Karlsson. “Stofa has so far exceeded our expectations in connection with the acquisition and our original plan was based solely on continued organic growth of the business. The Canal Digital offer would have created value both for Stofa and its customers.”

Stofa has around 350,000 households connected; 40% of these also take a broadband package.