Hutchison has dismissed media reports suggesting that its €1.3bn acquisition of Orange Austria has been opposed by the Austrian competition authority.
A Hutchison spokeswoman said that the company had not made a filing with the…
Hutchison has dismissed media reports suggesting that its €1.3bn acquisition of Orange Austria has been opposed by the Austrian competition authority.
A Hutchison spokeswoman said that the company had not made a filing with the Bundeswettbewerbsbehörde (BWB) yet.
She said that the deal is currently going through a ‘pre-notification period’, in which Hutchison provides information to the BWB and the European Commission, before formal filings are made.
Private equity firm Mid Europa Partners currently holds a 65% stake in Orange Austria, with France Telecom holding the rest.
In early February, Mid Europa and FT agreed to sell Orange Austria to Hutchison 3G, the Austrian subsidiary of Hong Kong-based conglomerate Hutchison Whampoa, for €1.3bn. The deal would make Hutchison the third biggest mobile operator in the country.
After this acquisition is completed, Hutchison also agreed to sell on Orange Austria’s budget brand, Yesss! Telekommunikation to the Telekom Austria group.
But the whole transaction is expected to face three major regulatory steps.
The BWB will assess the Yesss! part of the deal, while the European Commission will analyse the rest of the deal, although it could potentially also examine the Yesss! transaction.
Finally, the Austrian telecoms regulator, the Telekom-Control Commission (TKK), will also assess the deal, particularly the change of ownership and the distribution of frequencies.
Media reports citing the Financial Times Deutschland had claimed that the Austrian competition authority had opposed the deal, with the sale of Yesss! to Telekom Austria being the main sticking point.
France Telecom declined to comment. Mid Europa Partners was not immediately available to comment.
