EU blocks Hutchison's O2 UK mobile bid

Record ID: 104068

  • Title: EU blocks Hutchison's O2 UK mobile bid
  • Date: 11th May 2016
  • Summary: BRUSSELS, BELGIUM (FILE - JUNE 2015) (REUTERS) VARIOUS OF PEOPLE SPEAKING ON MOBILE PHONES
  • Embargoed: 26th May 2016 14:20
  • Keywords: mobile merger antitrust UK Hutchison O2 Telefonica telecommunications
  • Location: BRUSSELS, BELGIUM
  • City: BRUSSELS, BELGIUM
  • Country: Belgium
  • Topics: European Union,Government/Politics
  • Reuters ID: LVA0034HD691J
  • Aspect Ratio: 16:9
  • Story Text: EU antitrust regulators blocked on Wednesday (May 11) CK Hutchison Holdings' planned 10.3 billion-pound ($14.9 billion) acquisition of O2 from Spain's Telefonica, saying the deal would have led to higher mobile phone prices in Britain.
    The European Commission said Hutchison's concessions failed to address competition worries. Hutchison, controlled by Asia's richest man Li Ka-shing, had planned to expand its telecoms footprint in Britain, where it already operates as "Three".
    "Today the Commission has decided to block Hutchison's plans to take over O2 in the UK. This transaction would have created a market leader; a market leader that would have had influence over the entire mobile network infrastructure in the UK. Our investigations reveal significant competition concerns with this deal. It would very likely have led to higher prices and less choice for UK consumers," European Competition Commissioner Margrethe Vestager told a news conference.
    Vestager said the deal would also have hampered innovation and the development of network infrastructure in the UK.
  • Copyright Holder: FILE REUTERS (CAN SELL)
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