€22 billion deal puts KKR under European scrutiny over disclosure
Key Facts
The European Commission has issued a preliminary statement of objections concerning information KKR provided during its review of the 2024 acquisition of Telecom Italia’s fixed-line network for €22 billion. The investigation concerns whether the company accurately presented the terms of long-term wholesale access agreements that would allow other operators to use the network. The Commission said the question is whether KKR would keep the existing agreements on the same terms unless the parties agreed to amend them. The action concerns disclosure rules in European merger reviews, as well as competition in broadband services in Italy. The statement of objections is not a final finding on whether the information was accurate or the company breached the rules.
A KKR spokesperson said the company stands by the accuracy of the information it submitted to the Commission during its review of the deal, adding: "We stand by the accuracy of the information provided during the Commission’s review of the NetCo acquisition in 2024." The company said it would challenge the preliminary allegations and noted that the statement of objections does not constitute a final decision. It also said the original approval of the deal remains in force. The case therefore remains at a procedural stage that gives the company an opportunity to respond to the Commission’s concerns before it reaches a decision. The opening of an investigation or issuance of objections does not, in itself, revoke the approval granted for the deal.
The Commission approved the deal in 2024, then opened a formal investigation a year later following complaints from other operators. The complaints concerned a unilateral increase in the prices those operators pay to access Telecom Italia’s fixed broadband network after the deal, Reuters reported. The increase remains part of the complainants’ allegations and is not a finding in a final ruling in the case. Access terms matter to competitors that use the network to provide their services because long-term agreements set the commercial terms under which they access it. The Commission’s announced objections focus on information about whether those terms would continue or could be amended, including whether a change would require the other operators’ mutual consent.
If a company is found to have provided misleading or incorrect information during a deal review, the potential legal consequence is a fine of up to 1% of its total worldwide annual sales. This is a possible maximum for companies found liable, not a fine imposed on KKR at this stage. A final decision by the Commission, following completion of the proceedings and consideration of the company’s response, would be required between the preliminary objections and any penalty. The fine therefore remains a possibility tied to the outcome of the investigation, not an automatic consequence of the statement of objections. The possibility of withdrawing approval for the deal is also a separate, conditional legal matter, while KKR says the current approval remains in force.
KKR can examine the Commission’s file and present its defense at a closed hearing in the coming months, before a final decision is issued. This process gives the company an opportunity to respond to the basis for the Commission’s objections concerning the access agreements and information submitted during the deal review. The available facts do not specify a date for the hearing or final decision. In the markets, KKR shares closed at $91.34 on October 23, 2026, according to EL7 data. The available data do not include the stock’s daily trading range.