The European Commission has opened a formal investigation to determine whether KKR & Co. Inc. (KKR) provided incorrect or misleading information to the Commission during the merger investigation of KKRs acquisition of NetCo.

KKR is a global investment firm offering alternative asset management as well as capital markets and insurance solutions. NetCo comprises the primary and backbone fixed-line network business of Telecom Italia S.p.A. (TIM), specifically the broadband infrastructure connecting the central office to the street cabinet, as well as FiberCop S.p.A (FiberCop). FiberCop was a joint venture between TIM and KKR that included TIMs secondary fixed-line network, which connects street cabinets to end users premises.

On May 30, 2024, the Commission unconditionally cleared KKRs acquisition of NetCo, concluding that the transaction would not raise competition concerns in the European Economic Area (EEA). The Commission specifically examined the impact of the transaction on the market for wholesale broadband access services in Italy and found that the merged entity would not be able to worsen conditions for access to passive services or terminate such access, thanks to long-term agreements FiberCop entered into with several access seekers, including Fastweb and Iliad.

Under todays investigation, the Commission will assess whether KKR provided incorrect or misleading information about these agreements. This investigation is separate from the procedure that led to the unconditional approval of the KKR/NetCo transaction under the EU Merger Regulation.

The Commission has informed KKR of the opening of a formal investigation and will now conduct its investigation. The opening of a formal investigation does not prejudge its outcome.

Background

Under the EU Merger Regulation, merging parties must not provide incorrect, incomplete, or misleading information to the Commission, both when notifying a transaction and in response to the Commissions information requests. Notifications and information requests are indeed the primary sources of information for the Commissions review of mergers and acquisitions. Their accuracy and completeness are therefore essential for an effective assessment.

The Commission can impose fines on companies that, either intentionally or negligently, supplied incorrect or misleading information pursuant to Article 14 paragraph 1 of the EU Merger Regulation. Additionally, the Commission may revoke a decision adopted based on incorrect information under conditions set out in Article 6 paragraph 3 of the EU Merger Regulation.

More information will be available on the Commissions competition website, in the Commissions public case register under case number M.12099.