CEMAC zone: recession could reach 6% according to BEAC

All the indicators are certainly not red. But most of the economic indicators in the six countries of the Economic and Monetary Community of Central Africa (CEMAC) are already found the Monetary Policy Committee (CPM) of the Bank of Central African States (BEAC) at the end of the second annual session on June 24, 2020 in Yaoundé.

Analyzing the situation in Central Africa, it emerges that in the short and medium terms, the CEMAC zone is affected by the health crisis and the fall in the prices of the main export products. "

"In the first half of 2020, the revival of productive activities was slowed down in the sub-region by the disruption of supply circuits for imported products as well as by the restrictive measures adopted by the various governments to contain the effects of the pandemic. Although it is premature for the moment to fully grasp the impact of COVID-19 on national economies, it is already anticipated during this first semester a drop in production as well as a det…

Telecom: O2 and Virgin to merge

Telefonica and Liberty announced on Thursday the merger of their British subsidiaries. The new package is estimated at more than £ 24 billion and will be a new heavyweight in fixed-mobile convergence in the UK.
 
Telecom: O2 and Virgin to merge

Revealed a few days ago, negotiations between the Spanish Telefonica and the American Liberty have just been completed. The two telecoms giants announced on Thursday the merger of their British subsidiaries, O2 and Virgin Media. The new complex is valued at 38 billion pounds (43.4 billion euros), synergies included.

In addition to these synergies, estimated at more than 7 billion euros, O2 (owned by Telefonica) and Virgin (a subsidiary of Liberty) will thus constitute a new heavyweight in "convergence", an operator with its own fixed and mobile infrastructures. Across the Channel, the land is only occupied by BT to date, the only one to offer a mobile plan and a subscription to a broadband line in the same offer.

O2 is indeed the UK's leading mobile operator with 34 million customers, while Virgin Media dominates the very high speed market. It will allow them to consolidate their respective strike forces, while Virgin wants to continue deploying fiber and O2 must ramp up on 5G services.

Billions in cash for Telefonica

The complementarity of the two subsidiaries could also allow the obstacle of antitrust to be overcome, the authorities generally being more willing to validate a merger between a fixed asset and a mobile asset rather than between two players in the same market segment.

They will focus on the structure of the operation: a joint venture between the two parties, similar to that carried out by Liberty in the Netherlands with Vodafone-Ziggo. The US cable giant will make "a cash payment of 2.5 billion pounds (2.9 billion euros) to equalize ownership in the joint venture," said Telefonica in its presentation to the analysts.

The transaction "should reduce Telefonica's net debt from 5.5 to 5.8 billion pounds" (6.3 to 6.6 billion euros), said the Spanish group, whose huge debt is big black spot for years. At the end of March, it reached 38.2 billion euros.