2nd Oct 2015 14:51
LONDON (Alliance News) - The UK Competition and Markets Authority has requested that the European Commission refer CK Hutchison Holdings Ltd's proposed acquisition of Telefónica's 02 UK network to the CMA for investigation.
Hutchison, which runs the Three network in the UK, has agreed to acquire O2 UK from Telefónica for GBP10.25 billion.
The CMA said it is its initial view that the transaction "threatens to affect significantly competition in the UK retail mobile and wholesale mobile market".
Whilst the deal is currently under the purview of the European Commission, the CMA argues it is appropriate for the deal to be referred to the CMA for investigation as any impact on competition resulting from the merger is likely to be limited to UK consumers.
The UK regulator is currently undertaking a phase II probe of BT Group PLC's proposed GBP12.5 billion takeover of EE Ltd. The CMA argues that, given the "clear link" between the two cases, it would be more efficient to also examine the merger between Three and 02 to avoid duplication and fragmentation.
The EC must make a decision whether or not to refer the case by the end of this month.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
BT