EU regulators say KKR misled them over its €22bn TIM deal review

what happened

According to Sharecast, the European Commission unconditionally cleared KKR's takeover of TIM's business in May 2024, but reopened its investigation about a year ago. The probe followed complaints from third-party operators, who said access prices to TIM's fixed broadband network were raised unilaterally after the deal.

On Monday the regulator issued a statement of objections, preliminarily concluding that KKR had misled it. The Commission said KKR, at least negligently, provided incorrect or misleading information about the terms of its existing long-term wholesale access agreements. The statement does not prejudge the final outcome, but a fine could be sizeable, with penalties of up to 1% of aggregate annual global turnover possible.

KKR disagrees with the finding. A spokesperson said: "We stand by the accuracy of the information provided during the Commission's 2024 review of the NetCo acquisition. We will vigorously challenge these preliminary allegations in our response." KKR can reply in writing and request an oral hearing.

why it matters

For markets, this is a signal of regulatory risk for large private equity infrastructure deals in Europe. A possible fine and the outcome of the process could weigh on how investors view KKR, while the Commission's clearance remains valid until a final decision.

market impact

KKR: risk of a fine and tighter scrutiny of the fund's European deals

tags

instruments