Merger of Local.ch and Search.ch approved
The Competition Commission (Weko) has determined that the merger between Local.ch and Search.ch raises no concerns. It may now proceed without restrictions.
The plan is to implement the merger by the middle of the year. Swisscom will hold 69 percent and Tamedia 31 percent of the joint company. The two companies will continue to develop their offering into a strong Swiss alternative to global providers of search engines and social networks, as detailed in a press release. Swisscom and Tamedia welcome the Competition Commission's decision and plan to complete the merger by mid-2015. The online platforms local.ch and search.ch will continue to operate as independent offerings.
Swiss alternative to global providers
The merger of Local.ch and Search.ch is intended to create a comprehensive Swiss directory and information platform for private individuals, companies and the public sector and an important advertising partner for Swiss SMEs. Together, the two providers, which compete with international providers such as Google in particular, reach around 3.6 million Internet users in Switzerland every month.
Urs Schaeppi, CEO of Swisscom, is delighted with the positive decision: "The decision takes appropriate account of the international market environment and future developments. Thanks to the merger, together with Tamedia we can build a strong Swiss alternative to international search engines and social networks and develop new, attractive offers for our customers." Christoph Tonini, CEO Tamedia, adds: "Together with Swisscom, we have the opportunity to build a strong Swiss online directory and are thus sending a further signal for the consistent implementation of our digital strategy."
Swisscom has granted Tamedia a right to sell (put option) and Tamedia has granted Swisscom a right to buy (call option) Tamedia's 31 percent stake, both of which can be exercised from the third year after the completion of the transaction at a price in the region of CHF 200 million.
