A market test of remedies offered by Hutchison Three to address antitrust concerns about the takeover of O2 Ireland is thought to be imminent.
The move would be seen as an indicator that the European Commission is inclined to clear the transaction…
A market test of remedies offered by Hutchison Three to address antitrust concerns about the takeover of O2 Ireland is thought to be imminent.
The move would be seen as an indicator that the European Commission is inclined to clear the transaction provided third parties do not raise serious concerns about the latest remedy package.
Earlier this month Hutchison had submitted improved commitments to the regulator thought to focus on the three areas MVNO access, network sharing with incumbent Eircom, and spectrum.
Over the past days negotiations between the EC and the merging parties continued and one or several aspects of the package were refined.
According to a person with knowledge of the situation the regulator is now close to asking third parties including competitors and other interested regulators for feedback on the latest package. The market test might start as soon as today or tomorrow.
The EC was notified of the proposed merger in early October and launched an in-depth phase II investigation in November last year. In February, Hutchison received a statement of objections from the regulator, which outlined why the merger will be blocked unless further reaching remedies will be offered.
An oral hearing which was attended by the merging parties as well as interested third parties followed later that month.
According to Irish telecoms regulator ComReg, O2 has a market share of 27% and Three of 10%. If the two telcos merged, their joint market share would match the current leading mobile provider, Vodafone, which had a market share of 38% in Q4/2013. Incumbent Eircom has a mobile market share of 19%.
The deadline for the EC investigation is 19 May.
