KKR & Co. Inc. (NYSE:KKR) shares are trading lower on Wednesday.

European Union antitrust regulators are inquiring competitors and clients about potential concerns regarding the planned purchase of Telecom Italia‘s (OTC:TIAIY) fixed-line access network by U.S. investment firm KKR, which might impact Italy’s wholesale market, Reuters reported.

Regulatory concerns may prompt a protracted scrutiny of the agreement, compelling KKR to provide substantial remedies. 

Competitors have warned of potential price increases post-deal closure, Reuters added.

KKR is acquiring TIM’s national network for a potential sum of 22 billion euros ($23.5 billion), marking the first major divestiture of its kind. 

TIM’s landline infrastructure, known as NetCo, serves nearly 89% of households in Italy, with its extensive network of fiber and copper cables spanning over 23 million kilometers across the nation, the report read. 

The sale is a component of a government-supported initiative to reduce debt and rejuvenate the company, it added.

The EU watchdog also expressed concerns about potential threats to competition in Italy arising from the agreement between the two companies.

Price Action: KKR shares are trading lower by 1.71% to $96.29 on the last check Wednesday.

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