The Dutch cable operator UPC - UNITED PAN-EUROPE COMMUNICATIONS and Germany's PRIMACOM are to merge their cable activities in Germany, creating the country's third largest cable operator. This transaction should be finalised in the third quarter 2001 and create a group with 1.6 cable subscribers called NEW PRIMACOM. Under the terms of the agreement, UPC will contribute its subsidiary EWT/SS (Germany) as well as its subsidiary HOLDING CAI (Netherlands). For its part, PRIMACOM will contribute the subscribers of its subsidiary MULTIKABEL in Germany and in the Netherlands. At the end of the merger operation, UPC will hold a 52% stake in the new entity that should have a pro-forma turnover of 203 million euro.