Euskaltel (targeting the Basque country) and R (focused on Galicia) will both continue their local operations, as the merger won’t affect products or offerings, for the moment.

The whole deal has cost Euskaltel €1.19 billion, including capital and debt acquisition. Now it has been completed, the resultant company will target a potential market of five million customers and is set to reach €570 million in annual income.

“Today is a big day for Euskaltel and R. Merging both companies will enable us to grow and compete better in both our territories, and benefit clients, workers and providers,” said Alberto García Erauzkin, Euskaltel’s president. “We are similar companies, we share values like being close to our customers, a strong presence at every step of the service and innovation. This is why we have decided to keep going with both separate brands, local structures and professional teams, as they’ve been key for success.”

The Euskaltel-R integration is expected to generate important synergies within the local markets, as the combined company will provide better access and negotiating capacity over products, services and content, share know-how and technologies, as well as business optimisation.

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