August / September 1998

MCI/ WorldCom cleared

01 August 1998

The European Commission recently cleared the US$37 billion merger between MCI Communications and WorldCom, followed a few days later by the US Department of Justice. Both decisions specify that the companies must divest MCI’s Internet assets to an approved buyer, the idea being to ensure the buyer provides effective competition to the merged company. Britain’s Cable and Wireless plc agreed to buy both MCI’s wholesale Internet assets and, more recently, the retail side of the business.