The UK competition regulator has asked to review CK Hutchison’s (SEHK:0001) planned £10.3bn (US$15.3bn) acquisition of 02 from Telefonica (BMAD:TEF).
The UK competition regulator has asked to review CK Hutchison’s (SEHK:0001) planned £10.3bn (US$15.3bn) acquisition of 02 from Telefonica (BMAD:TEF).
The Competition and Markets Authority (CMA) believes that it, rather than the European Commission (EC), should review the deal, because its impact on competition would likely be limited to UK consumers. Furthermore, it is already investigating the BT-EE UK fixed-mobile merger.
“Given the clear links between these two cases, it would be more efficient to also examine the merger between Three and O2, in particular to avoid duplication and fragmentation,” the watchdog said in a statement, adding that “industry participants” support its request.
Hong Kong-based Hutchison, which operates as Three in the UK, agreed to buy O2 in March and notified the EC of the planned merger on 11 September. The commission has until 30 October to decide whether or not to refer the case.
The CMA, which requested the referral under Article 9 of the EU Merger Regulation, said its preliminary analysis of the deal found that it may significantly affect competition in the UK wholesale and retail markets.
The EC has rebuffed similar requests by national regulators to review four-to-three mergers in Ireland and Germany. The new Commission, led by Margrethe Vestager, last month opposed an agreed Danish JV between TeliaSonera and Telenor. Her predecessor Joaquín Almunia had been seen as softer on consolidation.