Telefónica has purchased KPN’s German subsidiary E-Plus in a transaction valued at €5 billion (approximately $6.6 billion), creating the largest mobile operator in Germany.
The Spanish company, which already had an active presence in the German market, will acquire a 65 percent majority stake. Combining Telefónica’s existing customer base with E-Plus will result in a cumulative total of around 43 million subscribers, representing roughly 40 percent of Germany’s mobile users.
Before this deal, the leading operators in Germany were Deutsche Telekom and Vodafone, holding approximately 35.3 percent and 29.9 percent of the market, respectively.
The acquisition elevates Telefónica to the position of Germany’s largest mobile operator and makes it the second-largest in Europe by both number of mobile customers and revenue.
The transaction is structured in two phases. In the first phase, Telefónica Deutschland will acquire 100 percent of E-Plus for €3.7 billion in cash and will take a 24.9 percent stake in the combined entity. In the second phase, Telefónica S.A. will purchase an additional 7.3 percent stake in the combined company from KPN for €1.3 billion. Following both phases, Telefónica S.A. will hold 65 percent of Telefónica Deutschland, KPN will retain 17.6 percent, and the remainder will be a free float.
In an official press release, Telefónica described the move as part of “a decisive year in Telefónica’s transformation process, fostered by a series of initiatives that have allowed a significant strategic shift in the company.”
One element of that strategic shift was the appointment of Peter Rampling in April as Managing Director of Telefónica Digital Germany. Under his leadership, O2 — Telefónica’s German brand — was recognized as the country’s “best digital brand.” Michael Duncan, CEO of Telefónica Digital Europe, commented at the time: “In Peter Rampling we are gaining a manager with excellent knowledge of the market.” Three months after his appointment, Telefónica has emerged as the market leader in Germany.
The acquisition reshapes Germany’s telecommunications landscape by consolidating a substantial share of customers under Telefónica and intensifying competition among the major operators. For consumers, this could lead to changes in pricing, service offerings, and network investment strategies as market players respond to the new leader’s scale and capabilities.
From an industry perspective, the deal highlights ongoing consolidation across European telecom markets as operators seek scale to fund network upgrades, expand digital services, and increase competitiveness. For Telefónica, the acquisition strengthens its footprint in a key European market and positions it to leverage synergies across brands, distribution, and infrastructure.
What are your thoughts on Telefónica’s acquisition of E-Plus and the implications of its new market leadership?