Zegona, Euskaltel consider local cable merger in Spain | Cable | News | Rapid TV News
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The Basque cable operator Euskaltel and Zegona, owner of Asturia’s Telecable, are reported to be negotiating the merger of the three regional cablecos.

telecable euskaltel rAccording to the financial newspaper Expansion, the merger would result in a large telco group with a solid subscriber base across Northern Spain and a yearly revenue of over €750 million.

The acquisition of local cablecos has been a clear target of Euskaltel since it bought out the Galician telco R in October 2015. However, the Basque cableco has always stated that more acquisitions were not a priority.

Currently, the main point of disagreement in the negotiation is Telecable’s valuation, but internal sources quoted in Expansion said that both companies’ stances are very close to each other.

If the merger goes ahead, the resultant company would be financially solid, owning a large subscriber base and a leading position in each of the local markets, as well as managing an extensive network, making any significant investment in the short term unnecessary.