9th Jun 2015 10:19
LONDON (Alliance News) - The Competition and Markets Authority Tuesday said it has fast-tracked BT Group PLC's GBP12.5 billion deal to acquire mobile operator EE Ltd to a so-called phase 2 investigation, which involves a deeper probe of the deal because the UK's antitrust regulator is concerned it will hit competition.
In May, BT asked the CMA to proceed directly towards a phase 2 investigation when it set out its argument for the deal, saying it will be good for competition, investment and innovation. BT said at that time it expects the deal to be completed by the end of March next year.
The CMA said Tuesday it has decided it is appropriate to fast track its investigation to a deeper probe as there is a "realistic prospect of a substantial lessening of competition in relation to the supply of wholesale access and call origination services to mobile virtual network operators and fibre mobile backhaul services to mobile network operators in the UK".
"We have found that there is a real risk that the merger could reduce their incentives to supply these inputs and that this could have a detrimental impact on the retail mobile market," CMA Executive Director of Markets and Mergers Andrea Coscelli said in a statement.
"BT and EE have recognised that the issues in this case are complex and that the test for reference at phase 1 would be met. They therefore requested use of the fast track procedure and, after due consideration, we believe this to be appropriate," Coscelli added.
Shares in BT are trading up 0.2% at 439.45 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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